EGX: Tie-Up Project Awaits Turkish Activation Of Fix Hub Mechanism
The tie-up project between the Egyptian and Turkish bourses will be finalized after Turkey manages to introduce the Fix Hub mechanism for its market.
Ahmed El-Sayed, the Deputy Head of Research & Markets Development Department at the Egyptian Exchange, said the tie-up project between the EGX and its Turkish counterpart shall enter its final phase after the Fix Hub mechanism comes into effect in Istanbul Stock Exchange (ISE).
In an exclusive statement to Amwal Al Ghad, El-Sayed further stated that the EGX is searching for legal alternatives to handle the current restriction in dealing with foreign markets equities. He said the Egyptian bourse needs to find legal alternatives so as to activate the tie-up project with the Turkish bourse noting that the ban on trading in foreign equities can hamper any potential tie-up between the EGX and any other foreign stock exchanges.
Moreover, El-Sayed explained that the tie-up project between the EGX and the ISE had been under discussions before the outbreak of January 25th uprising and the ouster of the former president Hosni Mubarak. Accordingly, choosing the Turkish bourse was not based on having similar ruling system like in Egypt amid the rise of Muslim Brotherhood in the country after the revolution, he added.
Choosing the ISE was based on having similar trading systems and rules to the EGX’s. Such a factor shall facilitate the tie-up process, El-Sayed noted.
Another factor to add, EGX’s joint trading with the Turkish bourse shall be the gateway to contacting with all the world-wide bourses, the Asian and the European in particular.
