The anticipated bourse alliance project between the Egyptian and Turkish stock exchanges will come into effect next September, the Vice Chairman of the Egyptian Exchange (EGX) announced on Wednesday.
Judge Khaled El-Nashar, EGX’s Vice Chairman, stated that the tie-up project between the EGX and Istanbul Stock Exchange (ISE) will be launched next September following the completion of building up the infrastructure of the direct trading process between the two bourses.
El-Nashar further said to the state-news agency MENA, most of the requirements necessary for the bourse alliance project have been finalized except for some challenges the EGX and ISE managements are currently working on.
The EGX and ISE are trying to solve the obstacle of having different timing of trading. As for the Turkish bourse, the trading sessions are divided into two shifts; one session run on the morning and another on the evening. The two bourses are also working on solving another challenge of having different official and weekly vacations.
El-Nashar also noted that it has been agreed that the joint trading between the EGX and ISE shall start by a number of 60 firms half and half. It has also been cleared that the 30 listed firms in the Egyptian bourse shall be enlisted in the benchmark EGX30’s category.
Egypt’s anticipatory alliance with the Istanbul Stock Exchange will allow investors in the two countries to trade on each other’s markets. Under the proposal, which has followed signing a memorandum of understanding signed by the two exchanges last June, Turkish investors would be able to trade directly on the Egyptian bourse through Turkish brokerages and vice versa.
