ICEC

Egyptian exchange introduces new tick size next Thursday

The Financial Regulatory Authority (FRA) has approved three proposals submitted by the board of the Egyptian Exchange (EGX) to boost trading and liquidity.

The proposals include the amendment of the tick size to become 0.0001 pounds for shares valued less than 2 pounds or a 1/1,000th of any listed-exchange rate, the EGX said in a statement on Sunday.

The new bidding system is set to commence next Thursday after tests were successful and all the required regulations to implement the system were ready at the Egyptian bourse, brokerages, and Misr For Central Clearing, Depository, and Registry, chairman of the EGX’s Mohamed Farid commented.

The new system will boost trading and liquidity in the market and will attract stocks valued at less than 2 pounds, Farid added.

The EGX has prepared a comparative study regarding this matter, resulting in setting the minimum rate of the tick size in accordance with the price of the security, he highlighted, noting that the study included the stock markets of France, Austria, Malaysia, Singapore, and Hong Kong.

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