Dr. Islam Azzam Announces The Completion Of The Regulatory And Operational Requirements For Launching The Futures Market In Egypt
As part of The Egyptian Exchange’s (EGX) initiatives to enhance the efficiency and competitiveness of the Egyptian capital market, Dr. Islam Azzam, Executive Chairman of The Egyptian Exchange, announced the completion of the regulatory and operational framework required for the launch of the Futures Contracts Market in Egypt. This milestone has been achieved in coordination with Taswyaat Clearing Services Company (the Central Counter Party - CCP) and under the supervision of the Financial Regulatory Authority (FRA).
The EGX Chairman clarified that this development is aligned with the Egyptian state’s broader efforts to advance and modernize the capital market, following the FRA’s granting of a license to EGX to operate futures markets activities on contracts derived from listed securities. In parallel, the FRA has approved both the Trading Regulations for Futures Contracts and the associated clearing and settlement procedures.
He further noted that this milestone forms part of a comprehensive regulatory and operational framework implemented under the supervision of FRA, with the objective of enhancing investor protection, safeguarding market integrity, and strengthening the efficiency of risk management related to the trading, clearing, and settlement of financial derivatives, in accordance with FRA-approved rules and regulations.
EGX Chairman, Dr. Islam Azzam, emphasized that the completion of the regulatory framework for the Financial Derivatives Market represents a critical milestone in the ongoing development of the Egyptian capital market. This framework enables the introduction of new financial instruments within a fully regulated environment that ensures trading efficiency, robust risk management, enhanced market stability, and strengthened investor protection.
He further affirmed that the Egyptian Exchange continues to work in close coordination with the Financial Regulatory Authority and all market stakeholders to ensure full operational and technical readiness for the launch of the financial derivatives market in Egypt.
He clarified that futures market is considered one of the main pillars of the capital market, as it provides financial instruments used to protect from price volatility risks, enhancing efficiency of risk management, within an organized regulatory framework ensuring integrity and stability of the market.
From his side, Mr. Khaled Amer, Managing Director of Taswyaat Clearing Services Company emphasized that Taswyaat plays an essential role in the Futures Market through implementing an integrated framework of real time risk management and assessment including: evaluating open positions, calculating margins, managing guarantees, and executing settlements as per regulations, ensuring fulfillment of settlement obligations and limiting counterparty risks.
The Managing Director of Taswyaat Clearing Services Company stated that the clearing and settlement systems, as well as the operational mechanisms developed by the company, are fully aligned with international best practices in the management of financial derivatives risk. These systems are designed to enhance the integrity and stability of all market participants, in addition to establishing and administering counterparty guarantee arrangements in line with the role of a central counterparty.
Taswyaat Clearing Services Company is the licensed entity by FRA to engage in clearing and settlement of contracts of Futures Market, playing a pivotal role in risk management and assessment of members’ accounts trading in financial derivatives, as well as risk management of counterparty in trading, supporting integrity and stability of the Egyptian capital market.
In the same context, Mr. Yasser El-Alaily, CEO of Egypt for information dissemination (EGID) said that the company is proud to participate in developing the system of financial derivatives trading, which provides advanced technological structure ensuring operational efficiency, transparency, and support market requirements. As the system allows trading as per the highest technical standards, contributing to enhance trust of all market participants.
He explained that this development comes within the pivotal role played by EGID to provide modern technological structure supporting Egyptian financial market, aligning with the best international standards of trading systems and data management.
It’s worthy to mention that both: Taswyaat Clearing Services Company, and Egypt for information dissemination (EGID), are owned by EGX, which enhances institutional coordination and contributes to development of Financial derivatives market.
In preparation for the launch of the Futures Market, EGID has developed a trading system for financial derivatives in line with the specific requirements of this activity, ensuring high levels of transaction efficiency and transparency. In parallel, Taswyaat Clearing Services Company has developed a comprehensive clearing and settlement system for derivatives contracts, supporting real-time margin calculation mechanisms through the seamless integration of trading and settlement systems. This framework enables the effective management of guarantees, as well as the execution of daily and final settlements, in accordance with the regulatory frameworks approved by FRA.