Egypt’s Central Clearing, Depository and Registry house (MCDR) announced on Thursday that almost all the trial sessions made in order to launch the exchange traded funds (ETFs) in the market have been concluded.
ETFs are set to be released to the Egyptian market within the coming period. Through the ETFs, Egypt is looking forward to boosting the national liquidity rates.
Sources from the MCDR explained to Amwal Al Ghad that over the last several weeks, the firm began in coordination with the financial regulator the Egyptian Financial Supervisory Authority (EFSA) and the Egyptian Exchange (EGX), to conduct trial sessions along with activating the ETFs.
The MCDR, EFSA, and the EGX are seeking to study every minor detail about the ETFs mechanism before getting launched in the Egyptian market, the sources confirmed.
The sources further expected that the activation of the ETFs mechanism is likely to be within a month from now.
Earlier this month, Sherif Samy – Chairman of the Egyptian Financial Supervisory Authority– stated that the key features of the EFSA’s ambitious scheme are to focus on supporting and reviving the domestic market sector. For instance, the financial regulator is currently keen on launching new investment products in the market, notably the ETFs, the top official noted.
ETFs are index funds that are listed and traded on stock exchanges like shares; they allow investors to gain a broad exposure to entire stock markets of different countries and specific sectors with relative ease, on a real-time basis and at a lower cost than many other forms of investing.
