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Wednesday, 2 October 2019

Derivatives trading and Egypt’s first futures exchange are coming next year -Farid

Futures exchange, derivatives trading are coming next year: Egypt could launch derivatives trading and its first futures exchange in 1H2020, EGX boss Mohamed Farid said yesterday, according to the local press. No further details were provided on the plans to introduce the new financial instruments, which have been in the works for a while now.

Background: The creation of a futures market comes after amendments to the executive regulations of the Capital Markets Act issued last July opened the door to the introduction of new financial instruments, including short-selling, futures and commodities exchanges, sukuk, and green bonds. Last we heard, Misr for Central Clearing, Depository & Registry (MCDR) and the EGX were finalizing the regulations and infrastructure needed to launch derivatives trading, which would see derivatives trades settled through a new electronic platform.

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