The program will contribute to boosting Egyptian Exchange (EGX) trade operations and expanding its base of traders
Launching the first discounting program for the purchase of securities on margin, HC Securities signed a cooperation agreement with Contact Factoring Company, at a value of EGP 400 million, aiming to finance HC clients trading in stocks and securities through margin trading.
The program will contribute to boosting Egyptian Exchange (EGX) trade operations and expanding its base of traders, which will reflect on the growth of the Egyptian economy, wrote an official statement.
It will provide great opportunities to serve a broad base of shareholders in the stock exchange of all categories, stated Hassan Shoukry, Managing Director of HC Securities and Bonds Trading, adding that this will be done through facilitating financing operations through the first factoring program for the purchase of securities on margin.
The cooperation is in line with the Financial Regulatory Authority’s (FRA) decision to allow factoring companies to provide quick loans to clients of securities trading companies who deal in margins.
Related > Investment fund companies can now finance buying of securities on margin: FRA
“The brokerage firms were mainly dependent on their own resources to serve the margin dealers of their clients, however, in light of the interest in encouraging small investors to trade and spreading the culture of investment in the stock exchange among them, such agreements provide great opportunities to pump new money, whereby clients can trade in larger amounts, which is reflected in increasing liquidity in the market and achieving a better investment environment,” he added.
CEO of Contact Financial Holding Group, Saeed Zaatar, stated that the cooperation between the two companies aims to expand the base of clients and small investors to encourage trading in securities on the Egyptian Stock Exchange.
