Egypt Bourse to launch its First Electronic Disclosure System April 23rd
In a step to raise the Egyptian market efficiency and to increase the disclosure and transparency levels, Egypt’s bourse is set to launch next Thursday the first electronic system for direct disclosure of companies.
Upon this system, the listed companies will be able to post their disclosure reports directly to the trading screens for investors, which reduces the time and effort required for companies to disclose their material news, furthermore to reduce errors caused by human intervention and to enable investors to identify the companies’ developments and their financial positions instantly at the same time for all of them.
The Egyptian Exchange (EGX) has conducted some actual experiments to ensure the system’ efficiency and effectiveness during the last 3 months, where the application of that system will begin on 33 companies representing EGX 30 index in addition to 3 other companies, which are the companies that have passed all of the technical and technological tests successfully. The application of the system will be expanded gradually for the rest of the listed companies when they complete their technological structure.
In this respect, Mohammad Omran, EGX Chairman said with regard to the new system “It’s an important strategic step for the Egyptian market and I expect a positive effect on the Egyptian market’ evaluation and therefore attracting more investments”.
Such a move focuses on improving the investment climate and increasing the Egyptian market competitiveness among the emerging markets.
He stated “We send a clear message for investors that disclosure and transparency are a first priority for EGX’ management.” Omran said
“The size of disclosures has jumped from an average of 5400 Disclosure to 9300 during the last three years, it was not confined only to an increase in the quantitative side, but we are more care to raise the quality of disclosures offered for investors.”
Omran declared that improving disclosure levels dropped a new burden on EGX to offer those disclosures instantly on trading screens, so we are exploiting technology to develop an electronic system that allows the listed companies to include disclosures directly on trading screens for investors like a number of developed markets, which helps to reduce the disclosure time.
He stated “I’m proud that the new system has been implemented internally by EGX IT officials, which indicates the degree of efficiency enjoyed by EGX on the technological level, and I think we will be able to provide that system for a number of other countries in the coming period.”
