Dr. Islam Azzam, Executive Chairman of The Egyptian Exchange (EGX), expressed his deep appreciation to Dr. Mohamed Farid, Chairman of Financial Regulatory Authority (FRA), for his significant continuous efforts to finalize procedures of launching derivatives market, and completing the necessary legislative framework. He highlighted that the support of FRA is pivotal to the success of this historic step.

Dr. Azzam noted that on November 5, 2025, the Board of Directors of The Egyptian Exchange approved EGX’s engagement in futures trading activities. Accordingly, a comprehensive application file was submitted to the Financial Regulatory Authority (FRA) seeking approval for the launch of the derivatives market. He emphasized that this initiative has generated strong interest among financial market participants, including a number of local and international investment funds. In parallel, EGX is currently in the process of establishing API connectivity for derivatives trading between trading members and settlement members.

He explained that the launch of the derivatives market will be implemented gradually over 4 phases, beginning with futures contracts on the EGX30 index, followed by futures contracts on the EGX70 index. The third phase will introduce futures contracts on individual equities, while the final phase will involve the launch of options contracts. These developments are expected to contribute to market deepening, enhance liquidity, and improve pricing efficiency.

Dr. Mohamed Farid, Chairman of the Financial Regulatory Authority (FRA), stated that the launch of the derivatives market represents a key milestone within FRA’s strategy to develop and modernize Egypt’s financial markets. He noted that the license was granted following the completion of the required regulatory and legislative frameworks, in close coordination with EGX and the settlement and clearing companies, and that the market will be introduced across 4 phases to ensure orderly development and market stability.

He further added that, in a historic development, 7 companies have applied for licenses to trade futures contracts, underscoring the FRA’s commitment to strengthening the legislative and technical infrastructure of the financial market, diversifying investment instruments, and enhancing the efficiency of risk management in line with international best practices and standards.

Finally, Dr. Islam emphasized that close coordination among FRA, EGX, and Taswyat Company will be instrumental in delivering an integrated derivatives market aligned with international best practices, thereby enhancing the competitiveness of the Egyptian capital market at both the regional and international levels.