The Egyptian Exchange Issued an Executive Decision to Organize a Mechanism to “Block Trading”

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The Egyptian Exchange Issued an Executive Decision to Organize a Mechanism to “Block Trading”

Dr. Mohammed Omran, Chairman of the Egyptian Exchange (EGX) issued an executive decision to organize using the mechanism for large volume transactions, or what is known as “Block Trading”.

The measures were approved by EGX and EFSA and started to be applied on the 18th of May 2014 and aiming to protect the market and its participants from the influence of the change in prices as a result of the huge trades performed in different prices from that of the market.

The block trading is intended to do transactions or deals valued at more than the daily average trading volume of the security shop and not less than 1% of the voting rights, and a minimum of a million Egyptian pounds, or those processes in excess of 10 million pounds and not less It’s the value of the counterparty for the amount of 50, 0000 pounds.

The new decision obliges the brokerage firms which want to use the Block Trading to apply a request to the “Market Control” before the day of the deal by one working day to allow the applicant brokerages to register the buying commends according to the mechanism, Orders cannot be modified or deleted in the last hour before the deal according to the new system.

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