Same-Day Trading Will Return To Egypt Before June-End: FSA Chief

The same-day trading mechanism which is known as T+0 will return to the Egyptian market very soon, by the end of next June at the maximum, the financial regulator chief said on Tuesday.

Dr. Ashraf El-Sharkawy – the Chairman of the Egyptian Financial Supervisory Authority (EFSA) – noted that the T+0 settlement mechanism will return amid the relative stability the Egyptian market currently witnesses.

Under the T+0 mechanism, traders will be allowed to sell any portion of their available stocks and then buy them again at the same session. Settlement will also be undertaken on the same day.

It is worth noting that the Egyptian Exchange (EGX) management halted the same-day trading mechanism following the January uprising in 2011 as uncertainty swept the market.

Trading settlement in Egypt’s stock market is currently undertaken using a T+1 system for government bonds and a T+2 system for all other securities.

For the EGX’s upcoming board membership elections,  El-Sharkawy noted that the EFSA will review the list of applicants so as to filter and eventually determine the names of the final candidates for the bourse’s board members.

Elsewhere, the financial regulator chief asserted that the EFSA currently has no plans to further amend the current conditions to trade in foreign markets. The existing amendments target focusing on boosting the local market.