The Egyptian Exchange (EGX) is holding advanced discussions with the African Securities Exchanges Association (ASEA) to establish a cross-market connectivity framework aimed at boosting trading activity and improving the flow of capital across the continent, EGX Chairman Islam Azzam told Bloomberg.
Azzam said the negotiations are “progressing seriously,” emphasizing that stronger links between African markets would expand shared investment opportunities and enhance the efficiency of capital movement across what he described as “one of the world’s most promising economic blocs.” ASEA currently includes more than 20 stock exchanges, according to its official data.
Separately, the EGX is preparing to launch a new sustainability index in partnership with S&P, scheduled for release in January. The index will track around 30 listed companies that meet standards related to governance, environmental and social responsibility, and liquidity, reflecting the exchange’s broader efforts to promote ESG-aligned investment.
Azzam also revealed updates on Egypt’s long-awaited derivatives market. The exchange is finalizing regulatory amendments that will allow clearing members to act as trading members, a step expected to increase participation once the derivatives market goes live.
He noted that several brokerage firms are already positioned to operate immediately after the regulations are approved.
The EGX has begun operating a pilot derivatives trading system while awaiting the full deployment of a new platform supplied by Nasdaq, which will be integrated with current systems ahead of the market’s official launch.
As part of its multi-phase roadmap, the EGX plans to debut futures trading next year, marking the first stage of a broader effort to diversify investment tools and elevate the sophistication of Egypt’s capital markets.
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