Sigma Capital

30-01-2025

Announcement to All Participants Regarding the Periodic Review of EGX Market Segments

Source: EGX

Within the framework of the reclassification of EGX market segments and the unification of the criteria of securities eligible for specialized activities with EGX indices’ criteria, as per item 34 of the Egyptian Exchange Board of Directors development strategy, EGX announces the review of the market segments classification, which will come into effect on Sunday, February 2, 2025, as follows:

1. Most Active Board
2. Short Selling Board
3. Medium Activity Board
4. Inactive Board
5. SMEs Board-“TAMAYUZ” List
6. SMEs Board-“NILE” List
- Securities listed on the Most Active board are eligible for intraday and T+1 trading as well margin trading and are accepted as collateral for up to 100% of their market value.

- Securities listed on the Medium Activity and the SMEs board- "Tamayuz" list are eligible for intraday and T+1 trading as well margin trading and are accepted as collateral for up to 80% of their market value.

- Only EGX30 index constituents and EGX 30 INDEX ETF are eligible for securities lending and borrowing for short selling.

-The allowance for intraday and T+1 trading as well margin trading on securities listed in the Most Active board, the Medium Activity board, and SMEs board- "Tamayuz" list, aims at increasing activity and enhancing liquidity across all those securities, and therefore improving market efficiency.

Members firms licensed to engage in those specialized activities must adhere to all governing regulations, in particular the followings:

1. Complying with the provisions of Article 262 of the Executive Regulations of the Capital Market Law, which require the verification of the buyers ability to pay for the transaction, irrespective of the client’s type, whether a natural or legal person. In all cases, the company shall be liable for its own funds to pay for the securities it purchased on behalf of its clients in case the client fails to settle for the buy transaction.
2. Conducting a comprehensive analysis for the risks related to the market, security, and the client, ensuring the highest possible level of risk management.
3. Preparing a list of securities accepted as collateral and for margin trading, while specifying the collateral percentage for each security based on risk analysis.