The Egyptian Stock Exchange is studying the possibility of joint trading with its Istanbul counterpart, as a way to allow both Turkish and Egyptian investors to trade on the other’s market.
“We are seeking methods that can enable Turkish investors to trade directly on Egyptian stock exchange from Turkey via Turkish brokerages, as well as Egyptians to trade in Turkish shares via Egyptian brokerages,” the chairman of Egyptian Stock Exchange, Dr. Mohamed Omran, told Reuters Sunday.
“A Turkish delegation is to visit Egypt to join the 16th annual conference of the African Securities Exchanges Association (ASEA), which will be held in the period of 2-4 December 2012,” Omran said.
The Turkish delegation plans to discuss the implementation of the items agreed upon in the memorandum of understanding (MOU), which was signed by the two exchanges in last June 2012, said Omran.
The MOU stipulates implementing Turkish-Egyptian cooperation on technical issues, technology sharing, training, and data production.
“MOU items states facilitating the investments exchanges between the two countries, in order to allow both Turkish and Egyptian investors to trade on each other easily” said Omran.
“Recently, there’s a noticeable intimate relationship between Egypt and Turkey, especially after the Turkish soft loan, which encourage refreshing the joint cooperation between both countires” Said Eissa Fathy vice chairman of the securities division at Cairo’s Chamber of Commerce.
The Turkish deal will not require any amendments to the Capital Market Law, chairman of the Egyptian Financial Services Authority (EFSA), Dr. Ashraf Al-Sharkawy, told Reuters.
In June, the industry regulator and the EFSA declared that brokerages and portfolio management firms could no longer trade foreign securities.