CAIRO: The Cairo and Alexandria Stock Exchange (Case) is looking into launching a new trading system named “Extreme alongside the current system.
The “Extreme trading system, announced Chairman of the Case Maged Shawky, will be launched next March. Training on the new system will start in December.
“The new system will improve stock trading because it uses more advanced technology and offers higher flexibility, an official at the Case told Daily News Egypt.
Also due this month is the launch of a stock exchange for small and medium-sized enterprises (SMEs), whereby minimum capital of listed firms will start from LE 500,000 to LE 20 million. The stock exchange will also lower transaction fees for trading on the new bourse.
In the meantime, the Case re-classified the system of listed companies and lowered it from 22 to 17 sectors, another step that aims to improve trading performance.
“The new classification system seeks to provide investors with a classification of listed companies on the basis of homogeneous characteristics that relate to the companies economic activities and main business revenues, stated the Case.
The system combines similar company activities under one sector. For example, “Financial Services and “Holding Companies would be merged into one.
On the other hand, the Capital Market Authority announced setting stricter financial standards for brokerage companies operating in the market to protect investors against fraud.
The decision to tighten financial standards has re-surfaced after chairman of Stars Brokerage firm fled the country with clients’ money last month. The company reportedly posed as a brokerage firm but was involved in pyramid scheme activities, a business model based on a fraudulent business plan known to be illegal in many countri
