The Egyptian Exchange (EGX) signed on Monday a license agreement in London with NYSE Liffe, the European derivatives business of NYSE Euronext, to list the EGX 30 index.
Witnessing the signing ceremony was visiting Osama Saleh the Egyptian Minister of Investment, said a press release, a copy of which was obatined by MENA.
"This signed agreement will enable NYSE Liffe to work with market participants to develop and launch a futures contract based on the EGX 30 index.
Saleh pointed out that the agreement will be a strategic turning point in the history of the Egyptian capital market to enter a new phase of development for the non-banking financial sector.
He also expressed the importance of the agreement's timing as the Egyptian economy continues its recovery which asserts the international community's confidence in the future of the Egyptian economy.
Saleh assured that this agreement will not be the last, stressing the importance of increasing the Egyptian Exchange's exposure to the international markets in order to turn Egypt into the largest financial center in the region.
EGX Chairman Mohamed Omran said "Futures contract on EGX 30 index will increase volumes on the underlying constituents of EGX 30 index, which will increase liquidity on EGX cash market. Furthermore, it will introduce for the first time a beneficial hedging tool for investors to manage their
Omran said "EGX values its business agreement with NYSE Euronext and looks forward to more joint projects with NYSE Euronext that create value for both parties".
Roland Bellegarde, Group EVP for European Equities and Equity Derivatives at NYSE Euronext said "We are delighted that EGX selected NYSE Liffe as its European derivatives partner to internationalise the EGX 30 index."
"The Exchange is committed to developing and offering a broad suite of derivatives contracts that meet the trading requirements of our customers and community."