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Trading Overview  

Trading Overview

The trading systems and mechanisms are considered among the most important factors for the development of securities markets globally, enhancing their effectiveness, which urged the Egyptian Exchange to develop its trading systems to:

1. Provide sophisticated trading mechanisms to ensure maximum transparency and fairness to all market participants.
2. Increase the capacity to attract more investments - whether domestic or foreign - that are always interested to enter sophisticated markets.
3. Meet the needs of market participants within the characteristics and mechanisms of trading.
4. Increase the ability to absorb as many investor orders as possible, thus increasing the number of transactions executed during the trading session.
5. Facilitate the work of financial intermediaries in securities market.

The most important features of the Egyptian Exchange is that it has adopted a distinctive approach that combines the needs of different investor groups; individuals and institutions, in a balanced framework of transparency and fairness.

Furthermore, it becomes clear that the idea of investing in the securities market is not limited to a particular category that has the financial ability and technical competence to enter the market. However, the Egyptian capital market has become attractive and competitive to many investment and savings pools due to the variety of financial instruments available for investment (such as stocks and bonds, closed-ended funds, ETFs and Egyptian Depository Receipts).This in addition to having various trading mechanisms such as omnibus accounts, margin trading, intra day trading and short selling.

Worth mentioning that the framework through which the Egyptian capital market operates, is characterized by providing various investor’s protection tools and mechanisms, starting from the investor’s decision to enter the Egyptian capital market (by making a code for each investor), the brokerage companies that are members of the Egyptian Exchange, which work according to specified rules supervised internally, through performing internal audit, and externally (in compliance with the regulations for the continuation of membership on the Egyptian exchange), and ended with the Settlement Guarantee Fund and the Investor Protection Fund against non-trading risks.

In light of the continuous technological development, EGX is keen to have a trading platform, which is based on the concept of automatic acceptance of orders (the continuous auction system), designed in a way that enables brokerage firms to link the trading system to their back office systems, and hence allowing customers to use the software trading on the internet and smart phones, with varied timing of the trading sessions.