Egypt’s new stock exchange chief plans reforms
Planned reforms meant to increase trading values, with the main reform being reducing trading halt times
Egypt’s new stock exchange chief wants to launch a raft of reforms aimed at increasing trading volumes over the next six months, with the listing of big companies high up on the list.
Mohammad Farid, who was appointed chairman of the Cairo bourse in August, told Reuters that the main reform would be reducing trading halt times to 15 minutes, down from 30.
Egypt’s financial regulator approved that measure yesterday and it will come into effect today, he said.
The exchange currently suspends trading on stocks that rise or fall by over 5 per cent for more than 30 minutes.
Farid hopes the decision will attract foreign investors.
“We are working on strengthening the market and increasing trading frequency over the short term by introducing new trading methods and streamlining current regulations,” he said at his office on the western outskirts of Cairo.
“We are going to halve the trading halt time to 15 minutes as of tomorrow’s session,” he added, a move which will allow more time for trading to take place.
Other measures Farid plans to introduce include allowing short selling, which he says will improve liquidity, but not naked short selling — selling without first borrowing the security — and holding conferences on initial public offerings.