EGX signed yesterday an agreement to grant the 1st license to an Egyptian financial firm to use EGX30 to setup XT Misr ETF’s, Beltone Financial wins the 1st license to start the ETF’s in the Egyptian capital market.
Dr. Mohammed Omran, Chairman of EGX, said that working with the ETF’s makes a variety in the market of financial tools or investors. He referred to the new ETF’s represents good hedging tool for all dealers either all individuals or institution as it will be traded on a daily basis as regular shares.
Mr. Alaa Sabaa, Chairman of Beltone Financial said that signing the agreement using EGX30 companies to be the 1st ETF in Egypt is a value add to raise the market depth in Egypt as it will be so simple to follow up its performance daily. He pointed out also that the cost of ETF managing is less than other funds.
It is worth mention that The Egyptian Exchange (EGX) issued its executive decision to start applying the regulations for both ETFs and market maker activity in the beginning of April 2014.