Enhancing disclosure raises efficiency of financial markets

CAIRO - 13 July 2018: Enhancing disclosure and transparency is necessary to increase the efficiency of financial markets, especially in terms of increasing liquidity and trading levels, and attracting more foreign investments, according to Chairman of the Egyptian Exchange Mohamed Farid.

This came during his participation in a conference on "How to strengthen corporate governance" in Portugal, organized by the Organization for Economic Co-operation and Development (OECD), to share experiences on how to build corporate capacities in governance and transparency issues.

Farid added that EGX is keen to play its role in raising awareness among all issuers of securities about best practices of disclosing periodic data and material information.

He stressed that the disclosure process is the backbone of any financial market because of the important role it plays in reducing risks, sharp fluctuations in stock prices and rumors.

Farid said that EGX has worked to improve the levels of disclosure and transparency by taking several measures, including the establishment of a new accounting disclosure department to audit the disclosures made by companies and notify investors of deviations. The department has already requested additional disclosures from companies and more transparency for investors.

Farid explained that EGX regularly organizes meetings between investment relations officials and investment and research managers to improve the transmission of information about restricted companies and improve the decision making process, obtaining detailed information about the performance of companies and their future trends.

He revealed that companies are required to update their sites with disclosure information and facilitate the efficient and regular access of investors to information and data to monitor the compliance of all restricted companies with the use of the electronic disclosure system.