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The Egyptian Exchange (EGX), in coordination with Misr Clearing, Depository and Registry (MCDR), has started to apply Resolution No. 96 of year 2018 that was issued by the Board of Directors of the Financial Regulatory Authority (FRA) regarding the intraday trading mechanism, which limits the maximum allowed securities to 1/1000 instead of 1/20000. It allows the customer to repeat the transaction on the same security more than once in the same session with the same value to the quantity to be sold. This aims at increasing the liquidity and volumes of trading on the stock exchange.
The official Newspaper published the decision after FRA Board of Directors approved this change based on the FRA;s consideration of one of the EGX’s proposals submitted to increase the liquidity and trading aggregates. This was after lengthy consultations with all relevant market participants and various professional associations working in the field of securities.
Mohamed Farid, EGX Chairman, said that the decision will contribute to raising the shares’ turnover through contributing to increase in liquidity and trading rates. Thus, making the Egyptian capital market compatible with the best regional and international models for trading in this regard.
EGX Chairman affirmed that raising liquidity and increasing trading is the basic incentive to attract and succeed any new public offerings. In addition, it is the most applicable mechanism for real and fair pricing of securities based on the of supply and demand forces in the market.
Farid added that EGX management aims at proceeding with the efforts to develop the Egyptian capital market in contributing to diversification of financial mechanism and tools for investors.
