FRA Chairman: Launch of Financial Derivatives Trading Marks Long-Awaited Milestone for Egypt’s Stock Market
Dr. Mohamed Farid, Chairman of Egypt’s Financial Regulatory Authority (FRA), stated that the launch of financial derivatives trading on the Egyptian Exchange represents a long-anticipated milestone, following years of institutional and regulatory preparation that began taking shape during 2024 and 2025, as part of a comprehensive plan to revitalize the market and strengthen its financial instruments ahead of a new phase of growth.
Speaking during a conference held at the FRA headquarters on Sunday, Farid explained that work on the project came within the broader framework of preparing for an expected revival in the capital market, particularly after the initiative had been suspended for several years following a previous market downturn.
He noted that restarting the project required rebuilding the framework from the ground up based on precise regulatory and technical foundations, implemented through multiple phased stages on both the legislative and technological levels, in order to ensure market readiness and avoid repeating past experiences.
The FRA Chairman added that these efforts culminated in the formation of an expanded committee chaired by Mohamed El-Sayyad, Vice Chairman of the Financial Regulatory Authority, with members representing both the FRA and the Egyptian Exchange.
The committee worked for several consecutive months to review and prepare the full regulatory framework governing derivatives trading, including rules for trading, clearing, settlement, risk management, and all technical requirements related to brokerage firms and clearing members.
Farid said these efforts resulted in the issuance of FRA Decision No. 6 of 2026, which authorizes the Egyptian Exchange to commence trading of financial derivatives — including futures contracts — on listed securities and financial instruments, marking a qualitative leap in the development of Egypt’s capital market.