The Egyptian Exchange is poised to lengthen its trading session by 30 minutes in a move intended to better align the market with neighbouring bourses and curb off‑market trading during hours when the domestic market is closed.
Egypt extends trading hours to 3pm
Dr Islam Azzam, chairman of the Egyptian Exchange, told Extra News that the proposal to extend the trading day emerged from a comparative study of regional exchanges. Markets such as Abu Dhabi and Dubai begin their summer sessions earlier than Cairo, creating a timing mismatch that can draw Egyptian investors to those venues while the local market is closed.
“The idea was to shorten that gap and ensure liquidity remains available in the domestic market,” Azzam said in an interview on the programme Money and Business. He added that most listed companies have already signalled their approval for the additional half hour.
Under the proposal, the regular session would end at 15:00, with settlement processes continuing according to the current timetable. The exchange said T+0 and T+1 post‑trade procedures would be completed as before, followed by aggregated account processing and the routine T+2 settlements, which will remain on schedule.
The exchange carried out an assessment of the potential effects on the clearing system and the banking network. Officials concluded the extension would not cause adverse consequences for settlement cycles or banking operations, clearing the way for implementation pending any final regulatory approvals.
Market participants and regulators expect the change to bring several practical benefits. Extending the session should reduce the incentive for investors to move orders to neighbouring markets during overlapping hours, while offering additional time for domestic trading to absorb news flow and geopolitical developments that often coincide with regional sessions.
Analysts say the move could modestly boost intraday liquidity and trading volumes, especially in stocks that trade actively on regional platforms. By keeping more trading onshore, Egyptian authorities hope to strengthen price discovery and deepen the local market over time.
However, some market watchers urge careful monitoring after implementation. They note that while operational and settlement risks appear manageable, the true impact on volumes and investor behaviour will only become clear after the extension has run for several months.
Azzam emphasised that the exchange’s planning accounted for technical and operational considerations. “We examined the workflows with clearing houses and banks and found no negative impact,” he said, adding that settlement deadlines would remain unchanged.
The proposed adjustment is part of a broader effort to modernise the Egyptian capital market and make it more competitive within the region. As neighbouring Gulf exchanges continue to attract cross‑border flows, measures such as modestly longer trading hours seek to preserve Cairo’s role as the primary venue for domestic equity trading.
Final details and a date for implementation have not been announced. Market participants will be watching closely for the exchange’s next steps and any accompanying guidance from regulators, which could include operational checks and a short transition period to ensure a smooth rollout.
Key Takeaways:
- Egypt extends trading hours to reduce timing gaps with regional markets and retain investor activity.
- Most listed companies have indicated agreement to the proposed 30-minute extension.
- Regulators found no negative impact on settlements or banking operations; T+0, T+1 and T+2 processes remain unchanged.
- The measure aims to increase liquidity and competitiveness with neighbouring exchanges such as Abu Dhabi and Dubai.
