The Chairperson of the Egyptian Exchange (EGX), Mohamed Farid, said that financial technology (fintech) is the main driver for the dissemination of financial culture and financial inclusion, considering capital markets as one of the leading and most effective examples in the use of technology. For capital markets it is in the process of digitising assets and proof of ownership through electronic systems instead of dealing with title deeds, thus making the financial and stock markets the foundation of the process of technological development.
The EGX board of directors is considering how to develop capital markets using modern fintech to be conducted in concert between all market parties, including brokerage firms, brokerage companies, and Misr For Central Clearing, Depository & Registry (MCDR). Farid stressed the EGX’s constant endeavour to develop all technological systems in the EGX to serve trading operations, encoding, and constraint.
He also pointed to the completion of procedures to automate the process of receiving subscription applications in the special operations market through the establishment of a separate electronic system, which allows the client to register for the application in order to participate in the subscription. Brokerage companies were addressed to update the internal electronic business systems, in addition to amendments that the EGX introduced to the collective accounts to facilitate trading on institutions and investment managers. On top of that comes the circulation of the process of electronic disclosure and the technological development carried out by the EGX in the field of membership.
Moreover, Farid highlighted the constant endeavour by the EGX management to intensify the reliance on data mining tools and artificial intelligence in the follow-up and control of trading movements within the market. This comes as part of the continuous development of the technological environment of registration, trading, membership, and disclosure.
The EGX has established an electronic system for the full data of companies dealing in the market, in coordination with MCDR, classified as small, medium and large companies, Farid said. Each company has financial statements for the previous two years, corresponding to the registration, then it is registered, and addressed to introduce the importance of the registration on the EGX.
Modern technology applications facilitate the process of access to large segments of customers and attract them to the EGX, Farid said. This is enhanced by the orientation of brokerage companies to develop their services, the use of technology applications that allow the opening of an electronic account and various other services that make it easier for the client to trade in the EGX.
With regard to the offerings expected to be received by the EGX before the end of 2019, Farid said that two companies are still in the process of serious listing, expecting the offerings to be carried out before the end of the year.
He added that the EGX is working to encourage listing and floating operations in the EGX through continuous communication with companies eligible for listing and introducing them to the advantages of listing.