Cabinet decision reducing bond trading costs activates bond market

Money market experts have leant their support to the Cabinet decision to reduce bond trading costs on the Egyptian Exchange (EGX). They say that the move to reduce costs, particularly reducing fees on trading in bonds and other debt instruments, will create an active market for bonds and fixed income mechanisms.

Ayman Elsawy, Managing Director at Sarwa Capital Holding Managing Director, said the costs were the main hindrance to an active fixed instrument market. Most trades on fixed income instruments have stalled due to the high prices involved.