Futures contracts could debut on the EGX in early 2019
EXCLUSIVE- Futures contracts could debut on the EGX in early 2019: We could be seeing trading in futures contracts on the EGX in 2019, EGX sources told Enterprise. The bourse is will begin working on setting up the infrastructure and operating mechanisms for these contracts next year. The Federation of Egyptian Chambers of Commerce is backing the measure, which would create a marketplace for oil, gas, wheat and fertilizers futures. EGX head Mohamed Farid is currently in Sweden to speak with top executives at Nasdaq and other exchanges on mechanisms to bring about futures exchanges. Regulations on futures were introduced as part of amendments to the Capital Markets Act.
What about sukuks? Asked when we might see sukuks on the EGX, our source was non-committal, saying the introduction of shariah-compliant debt products would require signoff from the Finance Ministry and the Central Bank of Egypt. Sukuks would require new legislation be issued, we were told, despite provisions authorizing them in the amended Capital Markets Act. The EGX is also looking at what it can do to accelerate the growth of a market for corporate bonds.