Egypt’s EGX to set up company for derivatives trading 2019-end

Big 5

Egypt’s stock Exchange (EGX) seeks to establish a new company to handle clearing and settlement for a planned derivatives market at the end of the year, its chairman says.

“Several amendments to ongoing trading systems are underway to help activate our new product (the derivatives market),” Mohamed Farid said on Thursday.

EGX will launch the new settlement company in collaboration with Misr for Central Clearing. Depository, and Registry House (MCDR), Farid added.

Authorities in Egypt believe that derivatives trading would boost liquidity on the bourse, which has around 270 listed firms. Egypt’s stock market comprises of the main EGX bourse and the Nilex small-cap exchange.

A futures exchange or futures market is a central financial exchange where people can trade standardised futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future. These types of contracts fall into the category of derivatives.

Comments
Loading...