Egypt Bourse starts Second Phase to restructure Over-the-Counter Market
The Egyptian stock Exchange (EGX) launches today the second phase of restructuring its over-the-counter market (OTC).
The Egyptian bourse is targeting OTC’s full transformation into a mechanized market, to allow deals market trade to be executed automatically and through mechanisms similar to the main market’s.
This pivotal move will help investors to trade in EGX-unlisted companies’ securities in much simpler and mechanized methods. It will create unlimited opportunities for trading and ownership transfers in favour of thousands of unlisted companies.
From his part, EGX chairman Mohamed Omran stated that the move comes as part of activating the bourse’s role in serving the national companies, whether listed, delisted or unlisted. It will pave the way for more flexible mechanisms for exiting.
It is a highly important step adopted ahead of Egypt’s March Economic Summit, so that it could be presented to foreign investors as a landmark progress that gives more confidence on the Egyptian investment climate.
The OTC market of developed stock exchanges plays a vital role in attracting investments, as it is usually parallel to the main market. Over the Counter market at EGX used to face many hindrances whether the orders market or the deals market. The orders market can be developed to become a primary market financing companies in preparation to listing them on the Exchange, whereas the deals market can be enhanced and automated to increase its trading volumes.
