The development follows the Financial Regulatory Authority (FRA) granting the EGX a license to operate a futures exchange for derivatives derived from listed securities. The FRA also approved the trading regulations and the clearing and settlement procedures for these contracts.
The new market will operate under an integrated system
supervised by the FRA, designed to protect investors, ensure market integrity,
and strengthen risk management for derivatives trading.
Azzam emphasized that the derivatives market is a
fundamental pillar of financial systems, providing essential tools for hedging
against price fluctuations. He added that the EGX is coordinating with the FRA
and all market stakeholders to ensure full readiness for the start of actual
operations.
Khaled Amer, Managing Director of Tasweyat for Clearing
Services, said his firm would play a central role by implementing a real-time
risk management framework. This includes evaluating open positions, calculating
margins, managing collateral, and executing settlements according to
international best practices to mitigate counterparty risk.
Tasweyat is the FRA-licensed entity responsible for clearing
and settlement for futures exchanges in Egypt.
Yasser El-Alaily, Managing Director of Egypt for Information
Dissemination (EGID), stated that the company has developed an advanced
technological infrastructure for the derivatives trading system. This system
aims to ensure transparency and operational efficiency in line with
international technical standards.
Both Tasweyat and EGID are subsidiaries of the Egyptian Exchange.
In preparation for the launch, EGID has tailored its trading systems to meet derivatives requirements, while Tasweyat has developed clearing and settlement mechanisms that allow for real-time margin calculations by linking trading and settlement systems for all transactions.