EGX dis­cuss re­quire­ments of the es­tab­lish­ment of fu­tures ex­change with a num­ber of global mar­kets of­fi­cials

Pro­posed amend­ments to the Cap­i­tal Mar­ket Law reg­u­lat­ing the es­tab­lish­ment of stock ex­changes and mar­kets: chair­per­son

The Daily News Egypt - - Business - By Mo­hamed Ayyad

Mo­hamed Farid, head of the Egyp­tian Ex­change (EGX), met with of­fi­cials of a num­ber of fu­tures ex­changes on the side­lines of the an­nual con­fer­ence of the World Fed­er­a­tion of Ex­changes in Bangkok.

Bi­lat­eral meet­ings in­cluded of­fi­cials from the Nas­daq stock ex­change, as well as Jo­han­nes­burg, Moscow and In­dia, along with rep­re­sen­ta­tives of the Dalian Com­mod­ity Ex­change and Zhengzhou Com­mod­ity Ex­change.

Farid ex­plained that dur­ing the meet­ings they dis­cussed the re­quire­ments for the es­tab­lish­ment of stock ex­changes, whether on fi­nan­cial in­stru­ments or com­modi­ties, and the im­por­tance of the com­mod­ity set­tle­ment of con­tracts, which would have re­quire­ments for ware­houses for goods traded on the mar­ket.

The qual­ity of con­tracts that can be traded on var­i­ous types of goods, rang­ing from gen­eral con­tracts with­out spec­i­fy­ing spe­cific ware­houses for the de­liv­ery of goods and trad­ing con­tracts where the de­liv­ery of the goods is lo­cated, have also been ad­dressed.

In ad­di­tion, Farid dis­cussed how to de­ter­mine the goods on which the con­tracts are traded, as well as the dates of ma­tu­rity, nom­i­nal value and other tech­ni­cal mat­ters, as well as the tech­no­log­i­cal struc­ture re­quired for the de­vel­op­ment of such con­tracts, the most im­por­tant of which is how to ob­tain prices of goods in the cur­rent or fu­ture mar­ket for trad­ing.

Dur­ing the meet­ing, the EGX head also dis­cussed mech­a­nisms to raise the ef­fi­ciency and ca­pa­bil­i­ties of the spe­cialised and or­gan­i­sa­tion staff to deal with fu­tures con­tracts or op­tions con­tracts in prepa­ra­tion for es­tab­lish­ing a reg­u­lated mar­ket in Egypt.

It should be noted that there are pro­posed amend­ments to the Egyp­tian cap­i­tal mar­ket law and that these amend­ments would be the leg­isla­tive and reg­u­la­tory frame­work for ex­changes and mar­kets of con­tracts in Egypt.The amend­ments also in­clude al­low­ing trade on con­tracts based on fi­nan­cial in­stru­ments, such as stocks, bonds, and agri­cul­tural com­modi­ties.

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