EGX To Establish A CCP Company For Derivatives

During The Egyptian Exchange (EGX)'s annual Suhoor on Tuesday, April 18th, 2023, Rami El-Dokany, EGX Executive Chairman announced that EGX’s Holding Company for Financial Markets Development submitted a request to the Financial Regulatory Authority (FRA) to establish a clearing house specialized in futures contracts.
 

This comes in line with EGX's strategy to introduce new investment vehicles to cater for all investor categories which results in improving market efficiency and raising liquidity levels.
 
Financial derivatives main advantage is that they provide investors with a mechanism for hedging price risks. EGX is working on penetrating the financial derivatives markets through introducing futures contracts on indices and stocks listed on EGX as well as options contracts.
 
Additionally, this clearing house will have the necessary infrastructure, technology and knowhow enabling it to activate the clearing and settlement operations of futures contracts on commodities as one of its potential expansion opportunities.