Egypt to begin derivatives trading in January-end: FRA Head

Egypt plans to launch derivatives trading on the Egyptian Exchange by the end of January, a move designed to modernise the country’s non-banking financial sector and offer investors a wider array of tools, its market regulator said Tuesday.

Mohamed Farid, head of the Financial Regulatory Authority (FRA), said reforms over the past several years have fueled rapid growth in investor participation and investment fund volumes. He described the changes as part of a broader effort to strengthen financial markets, improve regulatory oversight, and expand services beyond traditional banking.

The FRA is also rolling out new trading mechanisms, including short-selling and market-making tools, aimed at attracting both domestic and international investors and diversifying available investment opportunities.

Digital innovation is central to the reforms. The authority has approved Egypt’s first micro-insurance company, implemented electronic KYC verification for 400,000 clients, and launched a Property Title Insurance Policy to protect real estate transactions, increase market transparency, and instill confidence among participants.

Farid emphasised the social impact of these measures, noting that microfinance and consumer lending have directly benefited thousands of Egyptians, particularly small business owners and local entrepreneurs. He also highlighted new private pension funds intended to boost long-term household savings and provide additional capital for investment.

Market indicators reflect the sector’s rapid expansion. Market capitalisation has reached roughly 3 trillion Egyptian pounds, and daily trading volumes approach 8 billion pounds, illustrating growing depth, liquidity, and investor confidence in the Egyptian financial system.

Attribution: Amwal Al Ghad English