EGX launches 2nd phase of OTC Market development: Statement
EGX chairman Mohammed Omran - YOUM7 (Archive)

CAIRO: The Egyptian Exchange (EGX) started Sunday the second  phase of improving the Over The Counter (OTC) market mechanisms, whereby investors can place the sell order for non-listed companies without the need to have the other side of the transaction.

Experts have said the OTC system will contribute to accelerating partnership activity even in non-listed companies, and would help those companies to obtain financing more easily as the partners will have a fast exit way.

“In my opinion this is a strategic step for the EGX and means that the stock market would strongly contribute to improve the investment climate in Egypt, because the investor has now more confidence in the existence of smooth exit opportunities which is an important indicator in measuring the investment quality in any country,” EGX chairman Mohammad Omran stated Sunday.

The EGX launched the first phase of the OTC market restructuring for the shift to be an automated market in 2014, as well as its intention to allow parties to enter selling orders without the existence of an agreement with the other party.

The EGX conducted a trial session using that system last Wednesday with the participation of a large number of brokerage firms, and was “reassured” by their understanding of the system.

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