Islamic index + futures exchange coming in 4Q 2023: The EGX is set to launch its inaugural futures exchange along with its maiden shariah-compliant index in 4Q 2023, Al Borsa reports, quoting EGX chairman Ramy El Dokany.

#1- The Islamic index: The shariah-compliant index will be launched in collaboration with Standard & Poor’s between October and November, El Dokany reportedly told the newspaper. Some 20-25 preliminary stocks comply with the guidelines of the new potential index, he added.

Remember: The Islamic index is being launched to replace the EGX50, which was terminated by the bourse last month due to inactivity.

#2- The futures exchange: The country’s first futures exchange is expected to go live in the final quarter of the year, El Dokany told the newspaper, without providing a more specific timeframe. Ten state-owned and private-sector banks are currently in talks with the bourse to become members of the exchange’s clearing company, four or five of which will be chosen initially, he said.

Remember: The FRA, EGX, and Misr for Central Clearing and Depository (MCDR) are working to launch the futures exchange. The plan is for the exchange to initially allow traders to buy and sell index futures contracts, before launching stock futures and stock and index options at a later date. The EGX has been in talks with Beltone Financial to become the market maker for the exchange since the financial services firm is currently the only licensed market maker in Egypt.

ALSO- One asset manager wants to launch gold futures on the exchange: Evolve Holding plans to launch gold futures contracts once the market is up and running,CEO Sameh El Torgoman reportedly told Al Borsa, without providing more information.

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