EGX Chairman: Next Phase Will Focus on Deepening Derivatives Market

Omar Reda, Chairman of the Egyptian Exchange (EGX), said the capital market is entering a new phase focused on expanding and deepening the derivatives market as part of broader efforts to modernize financial infrastructure and diversify investment tools.

Speaking during the second edition of the “Money Made Simple” conference held in Sharm El-Sheikh on Thursday, Reda said the exchange is continuing to build an advanced market infrastructure centered on digital transformation and financial technology, alongside the development of legislation and modern financial instruments aimed at enhancing market efficiency, depth, and investor appeal.

He noted that the Egyptian Exchange is moving forward with the rollout and activation of several new financial mechanisms, including short selling, market makers, and liquidity providers, in addition to expanding the derivatives market.

According to Reda, the next stage will include the introduction of stock futures contracts alongside index futures, as part of a strategy designed to diversify investment products available to traders while improving market flexibility and operational efficiency.

The EGX chairman said the ongoing market reforms have already contributed to a noticeable increase in investor participation, both through the entry of new investors and the return of previously inactive traders who have resumed updating and reactivating their investment accounts.

Reda added that the “Money Made Simple” conference forms part of a wider collaboration among financial market stakeholders aimed at simplifying investment concepts, explaining financial instruments and their uses, and enhancing financial literacy and investment awareness across society.

He noted that while the inaugural edition of the conference was held in Cairo, the second edition is taking place in Sharm El-Sheikh, with the next event scheduled for Alexandria as part of a broader outreach strategy targeting younger generations and new segments of the population.

Reda also stressed the importance of distinguishing between saving and investing, explaining that saving primarily aims to preserve wealth, while investment contributes to growing it. He added that successful investing depends not only on returns but also on effective risk management through diversification and gradual portfolio building.

The Egyptian market, he said, has recently recorded historic surges in trading volumes, with average daily turnover during the past five sessions exceeding EGP12 billion, while the benchmark index has risen by more than 25% since the start of the year.

He further emphasized that promoting financial literacy requires coordinated efforts among various institutions, particularly media organizations and educational entities. In this context, he praised ongoing cooperation between the Egyptian government, represented by the ministries of education, investment, planning, and finance, and the Financial Regulatory Authority, alongside Japanese partners, to integrate financial literacy and investment concepts into secondary school curricula.

According to Reda, these initiatives aim to broaden public participation in the capital market and support