In continuation of the efforts exerted by EGX to enhance efficiency of the market, Dr. Islam Azzam, EGX Chairman, reviewed the prominent market performance indicators and development plans, which reflects the ability to attract investments and diversify investors’ base. This comes as a part of EGX strategy to enhance liquidity and strengthen trust of both regional and international investors.
Features of development enhancing market’s efficiency as follow:
- Current liquidity levels: Daily average trading value is EGP6.9 billion, which qualifies the market to accommodate new financial instruments.
- Adding “Continuous Trading system” for Government Fixed Income trading (GFIT), which encourages individuals to buy and sell more.
- Success of pilot sessions of trading bonds and treasury bills through the continuous trading system, with launching first day of actual trading beginning of next week.
- Derivatives trading on EGX30 Index will be on the first of March, with contracts lasting three months, as well as contracts lasting six months.
- Expansion of derivatives on EGX70 Index later after improvement of liquidity levels.
- Settlement of Financial derivatives mechanism is done through CCP system and Tasweyaat Clearing Services Company, to ensure efficient execution and reduce risks.
- New trading system in collaboration with NASDAQ, scheduled to be ready for operation during next July.
- The new system allows trading of financial derivatives, and carbon reduction credits and bonds.
- Misr for Central Clearing Depository and Registry MCDR completed work on developing short selling mechanism, after an extensive meeting with brokerage firms and back-office systems developers. These systems are currently being aligned to connect with the new system via FIX.
- Implementation of a current plan including: applying artificial intelligence techniques, XBRL standards, and developing the website as well as mobile application to enhance markets’ efficiency.
