The recent global economic events that were reflected negatively on the global financial markets performance and accordingly on the Egyptian Exchange (EGX), together with the other political and economic implications, all had significant influence on EGX after the January 2011 revolution.
Accordingly, EGX management undertook different procedures in anattempt to overcome the impact of these events, including:
- Fostering corporate disclosure to help investors in taking investment decisions based on sound information.
- Reducing the administrative intervention in trading operations to gradually allow investors to trade in a way consistent with the global capital markets standards.
- Flexibility in dealing with listed companies without prejudice to the frameworks and laws governing the market in order to protect small investors.
- Preparing proposals for a number of amendments to some rules governing the stock market mechanisms (NILEX rules, optional and mandatory de-listing rules, OTC market rules)
On the other hand, the financial markets have witnessed sharp fluctuations caused by the current economic and political conditions; hence some mechanisms were applied to limit the negative impact of such fluctuations:
- "Short selling" is one of these mechanisms introduced to the parties operating in the market through some workshops in order to be revised to fit the domestic market conditions and requirements.
- Working on launching a new index that measures the performance of the most active 20 companies with criteria that fit a large segment of investors.
- Providing more data about bonds market to offer more diversified investment opportunities for investors and to encourage companies to consider bonds as a financing mechanism for their various projects.
- Working jointly between the EFSA, EGX and Misr for CentralClearing, Depository and Registry Company to implement new mechanisms that increase the market depth and help enhancing liquidity.