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Wednesday, 30 June 2021

Our new futures exchange could go live before the end of the year

Derivatives trading is coming to Egypt before the year is out: The Financial Regulatory Authority (FRA) is looking to launch Egypt’s first futures exchange before 2022, FRA Deputy Chairman Islam Azzam told Asharq Business. The long-awaited exchange will initially allow traders to buy and sell index futures contracts, before launching stock futures, and stock and index options at a later date, Azzam said.

No private sector involvement in the clearing company? State-owned banks and the EGX will be allowed to own stakes in the clearing company, Assam said, without mentioning whether private sector firms will be allowed to bid. Each bank will be allowed to hold a maximum 10% stake in the company.

The National Bank of Egypt, Banque Misr, Banque du Caire and United Bank are all reportedly eyeing a piece of the new futures exchange. The FRA has allocated at least 75% of the exchange to financial institutions that meet solvency standards and / or with experience in futures contracts.

A new first for Egypt: The opening of the futures exchange will mark the first time ever that investors will be able to buy and sell derivatives on the EGX.

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