Dr. Islam Azzam, Chairman of the Egyptian Stock Exchange, participated in an opening speech at the Financial Technology and Finance Conference, held today in Cairo, during which he stressed that the Egyptian Stock Exchange is witnessing an unprecedented boom in the areas of digital transformation and financial technology, which contributes to developing the financial market, enhancing its efficiency and depth, and attracting new segments of investors, especially the youth group.
Azzam explained that the issuance of the Financial Technology Law No. 5 of 2022 and other decisions issued by the regulated Financial Supervision Authority, which allowed the use of modern technologies in electronic account opening (E-KYC), digital identity, and digital contracts via mobile phone easily and conveniently, which was directly reflected in the expansion of the investor base, as young people represent about 80% of new depositors on the Egyptian Stock Exchange during the recent period.
The Chairman of the Stock Exchange revealed an ambitious plan to develop digital platforms, which includes updating the Stock Exchange’s website within about 4 months to provide more comprehensive and in-depth data to investors, in addition to developing the EGX Gate and EGX Stock Riders applications soon, as the simulation application allows investors to experience virtual trading before pumping real money, while adding new tools such as financial derivatives and the mechanism for borrowing securities for the purpose of selling.
In a related context, Azzam announced a project to convert the financial statements of listed companies from PDF to Excel using data analysis tools, translating them into Arabic and English, processing them using artificial intelligence techniques, and displaying them on the stock exchange’s website, in a way that supports investment decision-making and enhances levels of transparency.
He pointed out the readiness to implement a new trading system from NASDAQ during the month of next July, which includes trading in financial derivatives, carbon certificates, and the sale of borrowed securities… and that this update represents a qualitative shift in the market’s efficiency and operational capacity, through a higher speed in executing orders, greater flexibility in dealing with the volumes and diversity of trades, and enhancing the market’s readiness to accommodate more advanced financial instruments.
Azzam also touched on the major development in the mechanism for selling borrowed securities, allowing lenders to determine lending amounts and durations, which contributes to increasing market liquidity, as five brokerage companies have so far obtained the necessary licenses.
The Chairman of the Stock Exchange stressed that the financial market today is no longer managed with traditional tools alone, but rather with an integrated digital system in which technological applications have become a decisive element in the efficiency and depth of the market. He explained that digital transformation has changed the way the investor interacts with the market, trading mechanisms, and the speed of information transmission, and has reshaped the relationship between the investor and the infrastructure of the financial market.
Pointing to a modern system for trading financial derivatives that relies on an advanced technological structure, and is based on the presence of a central clearing house (Central Counterparty – CCP) as an essential element for risk management, which raises the level of security and efficiency, reduces the risks of the counterparty, and provides a more disciplined framework for dealing in derivative instruments.
Pointing out the success of the Stock Exchange in developing an advanced settlement program for derivatives locally, with the possibility of exporting it to neighboring countries in the future, and the completion of the experimental sessions and the approaching start of actual implementation simultaneously, and on the other hand, work on developing the program for trading in government debt instruments (GFIT).
And modernizing the continuous trading system (Trading System), allowing individuals to trade more efficiently in treasury bills, stressing that the Egyptian Stock Exchange is studying a number of external factors and variables to develop the market in a comprehensive and sustainable manner.
Azzam explained that mobile applications have become the main point of contact between the investor and the financial market, as they allow opening accounts, executing orders, following up on portfolios, and viewing real-time data, which contributed to reducing the cost of participation, increasing the speed of decision-making, and the joining of about 299 thousand new investors within one year, in a clear indication of the role of digital applications in expanding the investor base and deepening the market.
In terms of market performance, the Chairman of the Stock Exchange revealed the achievement of strong numbers, as the market capitalization rose to reach about 3.28 trillion pounds, while the main index of the Stock Exchange rose by about 20% since the beginning of this year and rose by 36% in the last 7 months, with a noticeable increase in foreign investments, which was reflected positively on the global classification of the Egyptian Stock Exchange by international institutions.
Dr. Islam Azzam concluded by emphasizing that digital transformation in the financial market is not just a technical update, but rather a strategic choice to build a modern financial market capable of deepening liquidity, attracting long-term investment, and consolidating the position of the Egyptian Stock Exchange regionally, within the framework of a comprehensive vision for a market that operates efficiently in the digital economy and supports sustainable investment.
