CAIRO: The Egyptian Exchange (EGX) launched Thursday the first electronic system for direct disclosure of companies, in a step to increase the market efficiency and promote disclosure and transparency levels, according to a statement.
Under the new system, listed companies will be able to post their disclosure reports directly to the trading screens for investors, slashing time and effort for companies to disclose their material news, the statement read.
It also reduces human intervention errors and enables all investors to be updated with companies’ developments and their financial positions instantly.
After conducting experiments to ensure the system efficiency and effectiveness over the past three months, the system will initially begin on 33 companies listed on the benchmark index EGX 30, along with three other companies, which have passed all technical and technological tests “successfully,” EGX added.
The system will then be expanded gradually to include the rest of the listed companies upon completing their technological structure.
Commenting on the disclosure system launch, EGX Chairman Dr. Mohammad Omran said “It’s an important strategic step for the Egyptian market,” expecting it would lead to more investments.
“We send a clear message for investors that disclosure and transparency are a first priority for EGX’ management,” Omran added in the statement, affirming that such a move focuses on improving the investment climate and increasing the Egyptian market competitiveness among the emerging markets.