FRA Grants EGX Licence to Launch Financial Derivatives Market

Egypt’s Financial Regulatory Authority has granted the Egyptian Exchange its first licence to operate futures contracts derived from securities listed on the local market, marking a significant step in the development of the country’s capital markets.

According to the authority, the financial derivatives market will be rolled out across four phases. The first phase will introduce futures contracts based on the EGX30, with trading expected to begin in March. This will be followed by futures linked to the EGX70, then futures on individual stocks, and finally options contracts on both stocks and indices.

The authority said the move forms part of broader efforts to strengthen the legislative and technical infrastructure of Egypt’s capital market, diversify investment tools, and improve risk management mechanisms in line with international standards. Financial derivatives were defined as instruments whose value is derived from underlying assets such as shares, indices, or other assets approved by the regulator, including futures, options, swaps, and similar standardised contracts.

Details of the licence and the planned derivatives framework were previously outlined by the authority during the seventh annual Hapi Journal conference in December.