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Wednesday, 8 January 2020

Cabinet green-lights commodities exchange

Cabinet greenlights commodities exchange: The cabinet economic group yesterday approved the establishment of the Egyptian Commodity Exchange, according to a cabinet statement. The exchange will be managed by a company that is to be 50% owned by the General Authority For Supply Commodities, the Internal Trade Development Authority, the Egyptian Holding Company for Silos and Storage, and the Egyptian Exchange, Supply Minister Ali Moselhy said. MCDR, the state Insurance Holding Company, chambers of commerce, government banks, private and investment banks will share a 49% stake, he added. The holder of the remaining 1% stake has not yet been named.

Trading begins in September: The exchange will begin trading in September, 36 weeks after the launch the company, a senior Supply Ministry source told Al Mal. Six commodities — wheat, rice, corn, potatoes, onions, and oranges — will initially be traded.

Futures and options are both off the table for now: EGX chief Mohamed Farid during yesterday’s meeting confirmed what Internal Trade Development Authority head Ibrahim Ashmawy said a few months back: futures trading will not launch immediately after the exchange goes live. That said, Farid made it clear that he expects the exchange to pave the way for futures and options trading in Egypt in the future.

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