Egypt Grants First License for Futures Trading on Derivatives Contracts
Dr. Mohamed Farid, Chairman of the Financial Regulatory Authority (FRA), announced that the Egyptian Exchange has been granted its first license to operate futures trading on derivative contracts based on securities listed on the exchange.
During an extensive press conference at the FRA headquarters on Sunday, Dr. Farid described the license as a starting point for Egypt’s first-ever derivatives futures market, marking a historic milestone for the country.
He emphasized that the launch of derivatives trading comes after years of institutional and regulatory preparation, which began taking shape in 2024 and 2025, as part of a comprehensive plan to reactivate the capital market and strengthen its financial instruments in anticipation of a new growth phase.
Dr. Farid explained that the project aims to prepare the market for a long-awaited revival, particularly after it had been suspended for several years following a previous market collapse. Rebuilding required a careful, multi-stage approach covering both legislative and technical frameworks to ensure market readiness and prevent past mistakes.
He noted that these efforts culminated in the formation of an expanded committee chaired by Mohamed El-Sayyad, Vice Chairman of the FRA, including representatives from both the authority and the Egyptian Exchange. The committee worked for several months to develop a comprehensive regulatory framework covering trading rules, clearing and settlement procedures, risk management, and all technical requirements related to brokerage firms and clearing members.
These preparations led to the issuance of FRA Decision No. 6 of 2026, which officially allows the Egyptian Exchange to begin trading financial derivatives, including futures contracts, on listed securities and instruments, representing a significant step forward in the development of Egypt’s capital market.