Egyptian Exchange to Launch Futures Trading Market on 1 March 2026

The Egyptian Exchange (EGX) has announced that trading in financial derivatives, specifically futures contracts, will officially commence on Sunday, 1 March 2026. This marks a significant milestone in the development of Egypt’s capital markets and reflects the completion of the regulatory and operational framework required for launching a regulated derivatives market.

The launch follows the issuance of the necessary license to operate a futures exchange by the Financial Regulatory Authority (FRA), together with the approval of the Futures Trading Rules and the relevant Clearing and Settlement Regulations. The new market will therefore operate under a comprehensive supervisory framework designed to ensure market integrity, investor protection and systemic stability.

Initial Product Offering

Trading will initially commence with futures contracts on the EGX30 Index. Two contracts will be listed at any given time:

• A three-month (quarterly) contract; and
• A six-month contract.

Upon expiry of the front-month contract, a new six-month contract will be introduced, ensuring that two consecutive quarterly contracts remain available on a rolling basis.

The last trading day and expiry date will be the third Wednesday of the contract month (or the preceding business day if such Wednesday is not a working day).

The contract size has been deliberately simplified: the multiplier is set at one (1), meaning that each index point equals EGP 1. This reflects a deliberate policy choice aimed at:

• Lowering entry thresholds for market participants.
• Enhancing contract granularity.
• Supporting liquidity formation in the early phase.
• Allowing precise hedge calibration by institutional investors.
• Reducing systemic concentration risk.

Rather than introducing a large notional contract, the exchange has opted for accessibility and scalable exposure through position sizing.

Settlement will be cash-settled on a T+1 basis. This structure is intended to simplify valuation mechanics, reduce entry costs and encourage broader participation during the initial phase of market development.

The EGX has also indicated that, subject to market readiness, future expansion may include:

• Futures on the EGX70 Index; and
• Single-stock futures.

Clearing, Risk Management and CCP Framework

Clearing and settlement will be conducted through a central counterparty (CCP) model in cooperation with Misr for Clearing, Depository and Central Registry (MCDR). The CCP structure is designed to mitigate counterparty risk by interposing the clearing house between buyers and sellers.

An integrated risk management framework will apply, including:

• Real-time margin calculation;
• Collateral management;
• Mark-to-market valuation of open positions; and
• Daily and final settlement procedures.

The full end-to-end operational workflow has been tested prior to launch, and the trading infrastructure has been upgraded to support derivatives trading with real-time connectivity between trading, clearing and settlement systems.

Trading Mechanics

Derivatives trading hours will mirror those of the cash equity market:

Regular Trading Days

• Order entry: 08:3
• g: 10:00 – 14:30

During Ramadan

• Order entry: 08:30 – 10:00
• Continuous trading: 10:00 – 13:30

Available order types include:

• Limit Orders;
• Day Orders;
• All-or-None (AON); and
• Minimum Fill (MF).

Market Implications

The introduction of index futures represents a structural development in Egypt’s capital markets. It provides institutional and sophisticated investors with a regulated mechanism for:

• Portfolio hedging;
• Tactical asset allocation;
• Arbitrage strategies; and
• Enhanced price discovery.

The launch of the derivatives market is expected to deepen liquidity, enhance pricing efficiency and improve Egypt’s regional competitiveness as a capital markets hub.

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