The Egyptian Exchange (EGX) announced a new classification and regulations for its market segments, aimed at providing clarity and guidelines for investors. The different segments include the Most Active Market, Moderate Active Market, Non-Active Market, and Small and Medium Market. The new classification will take place starting 25/02/2024
Most Active Market:The Most Active Market comprises stocks listed on the EGX100, as well as certificates for index funds tracking any of the EGX indices. The regulations for this market segment are as follows:
Trading: Investors can trade these stocks through same-day trading (T+0) and the (T+1) settlement.
Margin Trading: Stocks in this market are accepted as margin stocks with a 100% collateral weight based on their market value.
Short Selling: Investors are allowed to borrow stocks solely from the EGX30 stocks list for short-selling purposes.
Price Limit: Stocks in the Most Active Market are tradable with a price limit of 20% based on the last reference price.
Trading Suspension: A 10% trading suspension is applicable.
Moderate Active Market: The Moderate Active Market includes stocks not listed in the EGX100 index or the Most Active Market. The regulations for this market segment are as follows:
Trading: Investors can trade these stocks through same-day trading (T+0) and the (T+1) settlement.
Margin Trading: Stocks in this market are accepted as margin stocks with an 80% collateral weight based on their market value. They are excluded from margin purchase operations if they do not meet specific quantitative and/or qualitative criteria.
Short Selling: Stocks in this market are not eligible for the short-selling mechanism.
Price Limit: Stocks in the Moderate Active Market are tradable with a price limit of 20% based on the last reference price.
Trading Suspension: A 10% trading suspension is applicable.
Non-Active Market: The Non-Active Market consists of securities that meet specific criteria, including companies under liquidation or with high debt volume and price fluctuations. The regulations for this market segment are as follows:
Trading: Traders are not allowed to use these stocks for same-day trading or the T+1 settlement, margin trading, or short-selling purposes.
Price Limit: Stocks in the Non-Active Market are traded with a price limit of 5% based on the last reference price.
Trading Suspension: There is no price limit suspension or price auction for pre-market or pre-close.
Small and Medium Market: The Small and Medium Market is divided into two sections:
"Tamayouz" List: This list includes stocks that meet the Tamayouz index criteria. Traders can engage in same-day trading and the T+1 settlement for these stocks, which are accepted as margin stocks with an 80% collateral weight based on their market value.
"Nile" List: This list includes stocks that do not meet the Tamayouz criteria but meet the small and medium market criteria. These stocks are not eligible for same-day trading, the T+1 settlement, or margin trading.
Additional Regulations:
Borrowing: Traders in the Small and Medium markets are not allowed to borrow these stocks for short-selling purposes.
Price Limit: Stocks in these markets are subject to a 10% price limit based on the last reference price.
Trading Suspension: A 5% trading suspension is applicable.
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