The Egyptian Exchange (EGX) is planning to launch a new company that will specialize in trading financial derivatives, such as futures and options contracts. EGX is also reaching out to brokerage firms to apply for a licence from the Authority to conduct derivatives trading activities. Financial derivatives are financial contracts that derive their value from underlying assets, such as stocks, currencies, precious metals, or commodities. The first phase of launching the derivatives trading will include offering futures contracts on the main and seventy indices, followed by highly liquid stocks. Al-Sheikh stated that the market is waiting for the licensing of brokerage firms as trading members and banks as settlement members, after which the derivatives trading will commence.

Source: Daily News Egypt January 07, 2024 19:32 UTC