{"id":563978,"date":"2021-08-01T13:50:27","date_gmt":"2021-08-01T13:50:27","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/08\/01\/egx-to-change-its-closing-price-mechanism\/"},"modified":"2021-08-01T13:50:27","modified_gmt":"2021-08-01T13:50:27","slug":"egx-to-change-its-closing-price-mechanism","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/08\/01\/egx-to-change-its-closing-price-mechanism\/","title":{"rendered":"EGX to change its closing price mechanism"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-01\"><\/a> <strong>Major changes to the EGX coming this fall: <\/strong>The board of the EGX has approved a slew of changes meant to boost trading volumes, particularly by institutional investors. These include setting up a new mechanism for calculating the closing share price and easing limits on intraday price movements on shares, according to a <a href=\"https:\/\/ent.news\/2021\/8\/egx-new-rules.pdf\">statement (pdf)<\/a>. These changes are expected to come into effect next September, the bourse said.<\/p>\n<p><strong>Introducing the \u201cpre-close auction\u201d: <\/strong>Under the newly approved system, closing prices will be based first and foremost on an auction that takes place before market close, EGX boss Mohamed Farid <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/782b5bbe-a256-4830-b7dc-0e053eda6003\">told us<\/a> last month. This \u201cpre-close auction\" will take place some time during the last 30 minutes before the end of trading, with the exact times to be determined by the EGX board next week, according the bourse statement. If the auction session results in a new closing price, traders will be able to buy and sell at that closing price for a few minutes before the end of the session (the \u201ctrade-at-close\u201d period) .<\/p>\n<p><strong>...And the MVWAP: <\/strong>Should the auction fail to attract enough bids and generate a closing price, a 30-minute moving-volume weighted average (MVWAP) would be used.<\/p>\n<p><strong>How is this different from the current system?<\/strong> Under the current system, the EGX uses the volume weighted average price (VWAP), which uses all the trades that occur throughout a given session to determine a share\u2019s closing price.<\/p>\n<p><strong>Why the change?<\/strong> The EGX aims to boost the trading volumes of institutional investors, who apparently prefer the MVWAP as it is used by some of the world\u2019s biggest exchanges, Farid told us. Institutional investors based abroad prefer that exchanges allow post-auction trades, he noted.<\/p>\n<p><strong>The EGX has also given share prices more leeway to move before trading is suspended. <\/strong>Shares will be allowed to rise and fall by 20% during a single session, up from a current 10%.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Major changes to the EGX coming this fall: The board of the EGX has approved a slew of changes meant to boost trading volumes, particularly by institutional investors. These include setting up a new mechanism for calculating the closing share price and easing limits on intraday price movements on shares, according to a statement (pdf). [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":563979,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10033],"tags":[102,68,633],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-563978","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-speed-round-capital-markets","tag-capital-markets","tag-egx","tag-enterprisepm","wpautop","entry"],"acf":{"mongo_id":"4bf63530-9d62-4496-880b-c49beed3fbb6","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/8\/329.jpg","photo_position":"above","related_issue":[563974],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>EGX to change its closing price mechanism - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/08\/01\/egx-to-change-its-closing-price-mechanism\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"EGX to change its closing price mechanism\" \/>\n<meta property=\"og:description\" content=\"Major changes to the EGX coming this fall: The board of the EGX has approved a slew of changes meant to boost trading volumes, particularly by institutional investors. 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As it stands, closing prices are calculated\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/1\/644.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":572705,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/07\/06\/egx-looking-to-change-how-closing-share-prices-are-calculated-says-farid\/","url_meta":{"origin":563978,"position":1},"title":"EGX looking to change how closing share prices are calculated, says Farid","author":"enterpriseam admin","date":"6 July 2020","format":false,"excerpt":"REGULATION WATCH- EGX looking to change how closing share prices are calculated, says Farid: The EGX plans to implement \u201csoon\u201d a mechanism proposed by the Financial Regulatory Authority\u2019s stock exchange advisory committee that would see the EGX conduct auctions to determine the closing price of shares, EGX boss Mohamed Farid\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":588315,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/06\/08\/explaining-the-egxs-new-trading-mechanism-rules\/","url_meta":{"origin":563978,"position":2},"title":"Explaining the EGX\u2019s new trading mechanism rules","author":"enterpriseam admin","date":"8 June 2023","format":false,"excerpt":"The EGX bans conditional trade mechanisms during auction sessions","rel":"","context":"In &quot;Enterprise explains&quot;","block_context":{"text":"Enterprise explains","link":"https:\/\/enterpriseam.com\/egypt\/category\/explainers\/enterprise-explains\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/5\/1552.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":563584,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/08\/the-egx-is-putting-closing-auctions-to-the-test\/","url_meta":{"origin":563978,"position":3},"title":"The EGX is putting closing auctions to the test","author":"enterpriseam admin","date":"8 July 2021","format":false,"excerpt":"The EGX will today trial a new system to calculate closing share prices that is hoped to improve accuracy, increase trading volumes and boost foreign investment in Egyptian shares. The bourse is considering introducing an auction system to determine closing prices, a method used by some of the world\u2019s biggest\u2026","rel":"","context":"In &quot;Capital markets&quot;","block_context":{"text":"Capital markets","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/capital-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/7\/80.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":576367,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/11\/22\/the-egx-has-changed-how-it-calculates-closing-share-prices\/","url_meta":{"origin":563978,"position":4},"title":"The EGX has changed how it calculates closing share prices","author":"enterpriseam admin","date":"22 November 2020","format":false,"excerpt":"REGULATION WATCH- The EGX has changed how it calculates closing share prices: Closing share prices on the EGX will be calculated according to the volume-weighted average, as long as this meets a minimum value based on the share\u2019s trades over the preceding three months, according to an EGX statement (pdf).\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":564367,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/08\/26\/new-closing-share-price-mechanism-will-come-on-5-september\/","url_meta":{"origin":563978,"position":5},"title":"New closing share price mechanism will come on 5 September","author":"enterpriseam admin","date":"26 August 2021","format":false,"excerpt":"MARKET NEWS- The date for instituting the new mechanism for calculating closing share prices has been moved to Sunday, 5 September, from Thursday, 2 September, the bourse said in a statement (pdf) today. No reason was given for the push. Approved by the EGX earlier this month, a \u201cpre-close auction\u201d\u2026","rel":"","context":"In &quot;GO WITH THE FLOW&quot;","block_context":{"text":"GO WITH THE FLOW","link":"https:\/\/enterpriseam.com\/egypt\/category\/go-with-the-flow\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/563978","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=563978"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/563978\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/afternoon\/563974"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/563979"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=563978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=563978"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=563978"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=563978"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=563978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}