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Tuesday, 22 October 2019

Wider ownership of EGP 100 mn company managing Egyptian Commodity Exchange?

Wider ownership of EGP 100 mn company managing commodities exchange? The Supply Ministry will begin next week the procedures to set up the EGP 100 mn company that will manage the Egyptian Commodity Exchange, Supply Minister Ali El Moselhy tells Al Mal. The company will apparently be owned by the ministry, the EGX, the Federation of Egyptian Industries, Misr for Clearing, Depository & Registry, private and public sector banks, insurance companies, and private equity funds. The exact division of shares in the company will be decided by the end of this week, El Moselhy tells the newspaper. Previous reports had indicated the company would be a JV between the EGX and the Supply Ministry, with the EGX holding the majority of the equity.

Background: The ministry and the EGX had completed earlier this week the feasibility study for the Egyptian Commodity Exchange, where traders will be able to buy and sell futures contracts. The exchange will initially allow five commodities — flour, iron, oil, corn, and cement — to be traded. The establishment of the exchange was made possible under amendments to the Capital Markets Act, which were passed in February 2018 and paved the way for the introduction of new financial instruments.

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