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Over -The- Counter (OTC) Mechanism:

EGX provides transfer of ownership mechanism of unlisted securities through the OTC mechanism. Transaction is announced and the transfer ownership is validated through the OTC as per Article (17) of the Capital Market Law No. (95) for year 1992 and Articles no. (99) & (100) of its Executive Regulations.

Trading Unlisted Securities is divided to:

A. The Electronic Orders approval Mechanism (Orders Mechanism):

This mechanism allows trading on the securities of the de-listed securities to provide an exit strategy for shareholders in case they need to. These transactions do not conform to disclosure and corporate governance rules that listed companies conform to which is a high investment risk to invest in these securities. In addition, there’s no closing price for securities at the end of each session. Moreover, trading through this mechanism is specified to be weekly on Monday and Wednesday at a settlement (T+3). EGX shall suspend trading using this mechanism if the company amends its registered issuance data, unless the amendments ae not approved by EGX Chairman.

B. Transfer of Ownership Mechanism (previously known as Deals Mechanism):

This is the mechanism through which the pre-arranged deals are executed. EGX announces these deals after execution whereby Brokerage firms notify EGX OTC department as follows:

First: Transactions Less Than EGP 20 Million:

1.Through the automated system for transactions executed on unlisted securities by submitting the data of these transactions on the ownership transfer program tailored for such deals from their premises.

2.The sample ad is submitted for the transactions executed and the member firm informs the OTC via email..

Second: Transactions Exceeding EGP 20 Million:

Brokerage firms shall submit a request to EGX Market Operations department with copies of supporting documents, to get the approval of the Operations Committee.