The same-day trading mechanism which is known as T+0 will return to the Egyptian stock exchange by the first week of the coming May; while the exchange-traded funds (ETFs) will be ready for launch within the second quarter of 2013, the financial regulator chief said on Thursday. It is worth noting that the Egyptian Exchange (EGX) management halted the same-day trading mechanism following the January uprising in 2011 as uncertainty swept the market. Trading settlement in Egypt's stock market is currently undertaken using a T+1 system for government bonds and a T+2 system for all other securities. Dr. Ashraf El-Sharkawy - the Chairman of the Egyptian Financial Supervisory Authority (EFSA) – further noted that the T+0 settlement mechanism will contribute to boosting the volume of trades by 30-40% in the Egyptian Exchange (EGX) which currently incurs severe liquidity shortage. Under the T+0 mechanism, traders will be allowed to sell any portion of their available stocks and then buy them again at the same session. When El-Sharkawy was asked about the timing of the ETFs launch in Egypt, he replied by saying: “ETFs will be ready for launch in Egypt by Q2/13 God willing." Concerning the EGX's strategies to allure new firms to the market ignoring the fact that major firms are seeking to exit Egypt, the FSA Chief asserted that the firms' exit plans are not driven by encountering problems. “Some firms are considering Egypt market exit due to the overall investment climate in the country." He added “The infrastructure of the Egyptian capital market is still capable of alluring more firms alongside offering funds, but the investors' appetite tend to be very sensitive to the multiple variables in Egypt." El-Sharkawy also referred that the political stability, restoring security and factories' return to operate along with tourism flourishing will contribute to push the national economy forward once again. “There must be a clear well-defined vision so as to solve and meet the economic challenges." “What it really matters for now, is alluring new investments for the country."
