EGX to adopt XBRL system by 2025

Fatma Salah
3 Min Read

The Egyptian Exchange (EGX) plans to launch a new electronic disclosure system by 2025 as part of its strategy to improve the technological infrastructure of the market by upgrading the electronic trading system and enhancing all related auxiliary systems, especially those related to trading control.

According to the EGX strategy report, the EGX is in the process of finalizing a cooperation agreement with Egypt for Information Dissemination (EGID) to launch an electronic disclosure system using the XBRL language. The system aims to enable companies to prepare their financial or non-financial statements through the new platform.

The report stated that the agreement will be based on a revenue-sharing model between EGID and the company that will be contracted with, with the platform’s revenues coming from the fees that the companies will pay without any costs for EGX.

The electronic disclosure system will allow companies to prepare and publish their financial and non-financial disclosures in various formats and exchange them electronically. The system will also collect and categorize financial and non-financial information for listed companies, as well as standardize the accounts and terms used in financial reports through the Taxonomies mechanism, which provides specialized dictionaries that include definitions and classifications of hundreds of terms.

The EGX seeks to disseminate information to create and market new systems and applications and promote them among operating or listed companies to increase liquidity rates and attract more investors.

The EGX is conducting advanced negotiations with three international companies specializing in trading systems to replace the current trading system.

Ahmed Al-Sheikh, Chairperson of the EGX, said that developing the existing trading system is a top priority, especially after it has been in operation for more than 15 years, and it is the first step in the EGX’s work strategy.

He added that the EGX differentiates between companies to select the suitable system and features that match the Egyptian market, as well as the best price, to be compatible with international and regional markets.

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