Egyptian Exchange partners with EBRD to boost market liquidity

The Egyptian Exchange (EGX) is partnering with the European Bank for Reconstruction and Development (EBRD) to boost market liquidity and efficiency. The collaboration aims to address current liquidity challenges and develop strategies to strengthen investor confidence and participation.

Through this joint project, the EGX seeks to increase the presence of liquidity support institutions such as market makers and liquidity providers, while promoting diverse financial instruments and trading strategies. Key measures include developing active securities lending mechanisms, improving access to lendable stocks, and enhancing hedging options. Additionally, the project will work to incorporate more sophisticated trading and hedging strategies into brokerage operations to further boost liquidity.

A recent study highlighted the potential for Egypt’s financial market to become one of the most advanced and organised in the region, citing its robust infrastructure and positive economic outlook. As part of the project, the team conducted consultations with various market participants in Egypt to identify challenges and opportunities for attracting both local and international investment.

This partnership seeks to create a dynamic and competitive market aligned with global best practices, ultimately fostering growth, stability, and increased investment opportunities for Egyptian and foreign investors alike.

Attribution: Amwal Al Ghad English