EGX cancels minimum quantities of ETF Market Makers

CAIRO – 13 February 2020: The Egyptian Exchange (EGX) submitted a proposal eliminating the minimum quantity for inviting on Exchange-traded funds (ETF), which limited the trading of small investors on ETF.

The amendment on article 3 of EGX’s chairman decision No. 133 for 2014 comes to delete a phrase in section 5 that stipulates that the amount of trading shall not be less than 1,000 share per order, according to EGX's statement.

This proposal was adopted by the Egyptian Financial Regulatory Authority (FRA).

“This decision comes as one of EGX’s efforts to provide diversified investment products that meet the needs of all investors, especially small investors, through long-term investments in EGX,” it added.

According to Investopedia, a market maker is an individual market participant or member firm of an exchange that also buys and sells securities for its own account, and at prices it displays in its exchange's trading system, with the primary goal of profiting on the bid-ask spread, which is the amount by which the ask price exceeds the bid price of a market asset.

On another note, EGX ended Thursday’s session in green, adding around LE 474.51 million to market capitalization, amid foreign purchases.