Starting of Thursday 4 October, 2012, the Egyptian Exchange (EGX) will start applying the new mechanism to calculate closing prices after the successful update of the current trading system (X Stream OMX). This new system would increase the orders execution speed, in addition to some additional features.
This update to the current system will enable applying the new mechanism of the shares closing prices determinants approved recently by The Egyptian Financial Supervisory Authority (EFSA). This aims to reduce price volatility resulting from the limited volume of trading on those shares. In the new system the value of shares required to change the closing price is not less than 0.5% of the average daily traded value per share, giving that share value is not less than LE 10,000.
This new update also allows the presence of more than one type of execution orders, including invisible orders, which is considered among some tools that will be available successively after studying the market situation to measure the capacity available for those new tools, known that the system supplier will provide the technical support for this version and for all its related updates.
Dr. Mohammed Omran, EGX Chairman, stated that the latest updates were applied as part of EGX's keenness to keep track with the latest developments and techniques necessary to increase the market efficiency along with developing the human skills and competencies in order to achieve optimum utilization of the new technical tools.
Source: EGX
