EFSA certified the following criteria for the companies eligible for Margin Trading, Short Selling and Intra-day Trading activities, according to Article 293 of the Executive Regulation of Law no. 95 of 1992.
- The listed company should publish its financial statements for at least one fiscal year, unless the company was listed according to Articles 11 and 11 bis of EGX Listing rules.
- The company's free floated market capitalization should not be less than 2/10000 of the total market free floated market capitalization.
- The number of trading days on the stock should not be less than 95 percent of the total trading days.
- The company’s shares should be traded through at least 65 percent of the member firms operating during the period under review.
- Trading on the company’s stocks should be carried out by at least a daily average of 30 investors.
- The turnover ratio for the stock should not be less than 40 percent (trading volume/listed shares).
- Effects of special deals are to be excluded when calculating the criteria related to this activity. Additionally, the Exchange should take into consideration the diversification of sectors when selecting the securities.
EGX can, in some cases, rely on the company's historical trading data when adding companies undergoing a restructure.
EGX can eliminate some stocks in cases of cross holding of 30 percent or more, or in case of non compliance with the disclosure rules.
EGX shall revise the list of companies eligible for specialized activities (margin trading, short selling and intra-day trading) on an annual basis. Companies eliminated from this list shall be announced a month prior to elimination.
EGX should notify EFSA with the list of companies eligible for specialized activities as well as any modification made on the list. The rules and criteria shall be announced on both, the trading screens and the website of the Egyptian Exchange (EGX).
The rules and criteria shall be announced on both, the trading screens and the website of the Egyptian Exchange (EGX).
