FRA grants EGX 1st license for futures contracts in financial derivatives market

Updated 1/18/2026 1:48:00 PM

Arab Finance: The Financial Regulatory Authority (FRA) has granted the Egyptian Exchange (EGX) its first license to operate in future contracts derived from securities listed on the local market, according to a statement.

The financial derivatives market will be launched in four phases, the first of which is through the issuance of futures contracts on the EGX30 index, with trading transactions expected to begin next March.

In the second stage, futures contracts will be issued on the EGX70 index, while the third phase will witness the launch of futures contracts on stocks.

Finally, the fourth phase will see the issuance of options contracts on stocks and indices.

This move aligns with the FRA's commitment to developing the legislative and technical infrastructure of the capital market, diversifying investment instruments, and enhancing risk management efficiency in accordance with international standards.

Financial derivatives are instruments or contracts whose value is derived from an underlying asset such as stocks, price indices, or assets as defined by the FRA, whether in the form of futures contracts, options contracts, swap contracts, or other standardized contracts.

Mohamed Farid, Chairman of the FRA, indicated that launching the derivatives market supports the FRA's strategy to create more developed and sustainable financial markets.

Farid added that the license was granted after completing the necessary regulatory and legislative framework, and full coordination with both the EGX and Misr for Central Clearing, Depository and Registry (MCDR).

In December, the chairman unveiled details regarding the license at the seventh annual Hapi Journal conference.