Egyptian Exchange Receives First License to Operate Futures Contracts Market

The Egyptian Exchange (EGX) received its first-ever license to operate a futures contracts exchange, marking a historic milestone in the development of Egypt’s capital markets.

The announcement was made by Mohamed Farid, Chairman of Egypt’s Financial Regulatory Authority (FRA), during a press conference reviewing the authority’s achievements for 2026. Farid described the move as “the kickoff and official launch point” for futures and derivatives trading in Egypt for the first time.

The announcement came in the presence of Islam Azam, Chairman of the Egyptian Exchange, along with senior officials from both the FRA and the EGX. During the event, the FRA confirmed its approval of the rules governing futures contracts trading, as well as amendments to the securities lending and borrowing mechanism for short selling.

These measures are part of broader efforts to boost market liquidity, improve supply-demand balance, and enhance the attractiveness of the Egyptian Exchange to investors.

In this context, the Egyptian Exchange has completed a comprehensive upgrade of the regulatory framework and procedures for securities lending and borrowing, a move aimed at increasing trading liquidity and market efficiency. The upgrades also included enhancements to the automated stock lending system operated by Misr for Central Clearing, Depository and Registry (MCDR).

The exchange is also preparing to launch a market maker and liquidity provider mechanism, designed to improve liquidity levels and increase trading volumes and values, thereby strengthening overall market efficiency and appeal to both domestic and foreign investors.

According to the FRA, the regulatory framework governing market makers and liquidity providers has been finalized, following joint efforts between the authority and the Egyptian Exchange, with technical support from the European Bank for Reconstruction and Development (EBRD).

As part of its technology modernization strategy, the Egyptian Exchange has contracted Nasdaq to develop a new trading system capable of supporting a wide range of financial instruments and trading activities. The system will accommodate equities, fixed-income instruments such as bonds and sukuk, derivatives, carbon certificates, as well as market-making activities.