As part of its comprehensive strategy to bolster the tech infrastructure, the Egyptian Exchange (EGX) has announced its forthcoming launch of an advanced electronic disclosure system by 2025; as part of its strategy to upgrade the electronic trading system and enhance all related systems, especially those related to trading control.
According to the EGX strategy, the exchange is currently in the final stages of formalizing a collaboration agreement with Egypt for Information Dissemination (EGID) to establish an electronic disclosure system leveraging the XBRL language. This cutting-edge system seeks to empower companies by providing them with a platform on which they can efficiently prepare their financial and non-financial statements.
The report read that the agreement will be based on a revenue-sharing model between EGID and the contracted company, with the platform’s revenues derived from the fees paid by companies, thereby incurring no additional costs for EGX.
The electronic disclosure system will enable companies to adeptly craft and publish their financial and non-financial disclosures in diverse formats, facilitating seamless electronic exchange. Furthermore, it will facilitate the collection and categorization of financial and non-financial information for listed companies, while also standardizing the accounts and terminologies employed in financial reports through the utilization of Taxonomies. These specialized dictionaries encompass comprehensive definitions and classifications of hundreds of terms.
The EGX endeavors to disseminate information effectively, promoting the adoption and proliferation of novel systems and applications among operating or listed companies. This strategic pursuit aims to augment liquidity rates and entice a greater influx of investors.
On the same level, the EGX entered in negotiations with three internationally renowned companies specializing in trading systems. The objective behind these talks is to replace the existing trading system with a more sophisticated alternative.
EGX Chairman, Ahmed Al-Sheikh, asserts that the development of the current trading system stands at the forefront of priorities, particularly in light of its over 15 years in operation. This constitutes the initial step in the EGX’s overarching operational strategy.
Al-Sheikh further emphasizes the meticulous approach undertaken by EGX in discerning the most suitable system and features that align with the unique characteristics of the Egyptian market. Additionally, the chosen system must exhibit compatibility with both international and regional markets.
