The Egyptian Exchange (EGX) is planning to launch a new product in its derivatives market in the second half of this year, as it weighs between futures contracts on the EGX70 index and stock futures, Mohamed Sabry, Vice Chairman of EGX, told Zawya Arabic on Monday.

The EGX launched its derivatives market in early March, beginning with futures trading on its benchmark EGX30 index with contracts extending for three and six months.

However, the Egyptian derivatives market has not seen strong trading activity during the first two months since its launch.

Sabry said the exchange is currently working on raising financial awareness of derivatives trading and increasing the number of brokerage firms operating in the segment, to enable these instruments to achieve their objectives and pave the way for the introduction of more effective products.

Responding to a question on the expected new derivatives product to be launched this year, Sabry said: “We started with EGX30… then we will move to EGX70 or stocks; this is still under study,” adding that the new product is expected to be launched before the end of the year, during the second half.

Click here to read the article in Arabic.