In continuation of efforts to develop the government debt instruments market and enhance its efficiency and trading depth in the secondary market, The Egyptian Exchange (EGX) held an extensive meeting with representatives from banks and brokerage firms licensed to trade government debt instruments. The meeting introduced trading mechanisms based on an electronic trading system.
EGX Executive Chairman, Dr. Islam Azzam, stated that this initiative comes within the framework of continuous coordination among the relevant stakeholders to enhance the efficiency of the market’s infrastructure, apply best international practices in the trading of government debt instruments, serve the interests of market participants, and support the stability and growth of the Egyptian financial market.
The EGX Chairman added that participants were given the opportunity to practically apply the system by executing a number of simulated trading scenarios. This enabled them to gain a direct understanding of the system’s features and its various technical capabilities.
During the meeting, the Government Fixed Income Trading (GFIT) program was presented, along with a detailed explanation of the various trading mechanisms available on the system, including the pre-agreed trades mechanism (Trade Report), the Request for Quotation (RFQ) mechanism, and the quotation screen. These mechanisms provide a range of execution methods that align with the diverse requirements of different market participants.
A comprehensive presentation was also delivered on the new “Continuous Trading” mechanism, which allows traders to enter direct buy and sell orders into the system, with transactions executed automatically based on the best available bid and offer prices. This mechanism contributes to enhanced liquidity and improved efficiency of price discovery in the market.
The meeting concluded with an interactive discussion session bringing together representatives of the participating entities and the Ministry of Finance, during which views and proposals were exchanged on ways to develop the secondary market for Egyptian Treasury bonds and bills. The discussion supported the objective of deepening the debt instruments market and enhancing its attractiveness to investors.
