Financial derivatives market to launch within months: FRA deputy chairman

Cairo – December 21, 2023: Egypt’s Financial Regulatory Authority (FRA) will launch the highly-anticipated financial derivatives market in the coming few months, revealed FRA’s deputy chairman Islam Azzam.

The authority is eager to develop developing new markets and products, in line with its framework to diversify mechanisms for attracting investments into the Egyptian economy, Azzam explained.

The financial derivatives market will enable investors to better manage the risks associated with various investment instruments, and promote further investing in stocks and securities, he added.

During a panel on Wednesday, Azzam revealed that, during the first nine months of 2023, the value of securities issuances within the primary market, including stocks and bonds, reached LE 279 billion, an increase of 7.6 percent compared to LE 259 billion in the same period last year.

The total value of insurance premiums collected jumped 30 percent during the first 9 months of the year to hit LE 5 billion, according to Azzam, compared to LE 42.2 billion in the same period last year.

Azzam explained that the FRA views the development of the real estate index, carbon emissions reduction certificates, and financial derivatives markets as its priorities.

He added that the FRA and the EGX are currently studying the regulatory matters and mechanisms that will be applied to real estate trading.