The Egyptian Exchange (EGX) will commence trading as of Thursday, 20 September with the new tick size.
On Sunday, the Financial Regulatory Authority (FRA) has approved three proposals submitted by the board of the EGX to boost trading and liquidity.
The proposals included the amendment of the tick size to become EGP 0.0001 for shares valued less than EGP 2 or a 1/1,000th of any listed-exchange rate, the EGX said in a statement.
The new bidding system is set to commence next Thursday after tests were successful and all the required regulations to implement the system were ready at the Egyptian bourse, brokerages, and Misr For Central Clearing, Depository & Registry, chairman of the EGX’s Mohamed Farid commented.
The new system will boost trading and liquidity in the market and will attract stocks valued at less than EGP 2, Farid added.
The EGX prepared a comparative study regarding this matter, resulting in setting the minimum rate of the tick size in accordance with the price of the security, he highlighted, noting that the study included the stock markets of France, Austria, Malaysia, Singapore, and Hong Kong.