Trading
Everything about how trades actually happen on the Ethiopian Securities Exchange: who can trade, when, and how orders get matched and settled.
Trading Members
Only licensed capital market service providers, such as securities brokers, dealers, investment banks, and market makers, can trade directly on ESX. Investors work through one of these trading members to buy or sell listed securities.
| Firm | Profile Link |
| Wegagen Capital Investment Bank | wegagencapital.com.et |
| CBE Capital Investment Bank | cbecapitalsc.com |
| Ethio Fidelity Securities Dealer | ethiofidelity.com |
| Awash Capital S.C | awashcapital.com |
| Gadaa Securities Dealer S.C | gadaacapital.com.et |
| First Addis Investment Bank | fabinvestbank.com |
| Siinqee Investment Bank | siinqeeinvestmentbank.com |
| Prime Capital S.C. | primecapitalsc.com |
Trading Hours
ESX is open for trading on all Ethiopian business days.
| Session | Time (EAT) |
|---|---|
| Pre-opening / system prep | 8:00 AM – 8:59 AM |
| Pre-Open Session (single-price auction sets opening price) | 9:00 AM – 9:30 AM |
| Continuous Trading (Open Market) | 9:30 AM – 3:00 PM |
| Closing Session | 3:00 PM |
| Post-Close administrative reporting | 3:30 PM – 5:00 PM |
Settlement Cycle
Equity trades on ESX settle on a T+2 basis: the trade date plus two business days. For example, shares sold on a Monday settle with funds credited on Wednesday; weekends and public holidays are not counted.
Liquidity
Liquidity refers to how easily a security can be bought or sold without significantly moving its price. A tighter bid-ask spread and higher trading volume both signal a more liquid stock. With a young exchange and a small number of listed companies, liquidity varies significantly by ticker; readers should check recent trading volume before assuming a stock is easy to trade in size.
Bid and Ask Price
The bid is the highest price a buyer is currently offering for a security; the ask is the lowest price a seller will accept. The gap between them, the spread, is a rough indicator of liquidity: a tighter spread generally means a more actively traded stock.
ESX’s Automated Trading System (ATS)
All trading on ESX-listed securities runs through the exchange’s Automated Trading System. ESX operates a hybrid market: a central limit order book, where buy and sell orders are matched anonymously on a price-time priority basis, alongside a Request for Quote (RFQ) mechanism for bilateral and multilateral negotiated trades. The ATS is integrated with Ethiopia’s Central Securities Depository (CSD) to handle clearing and settlement. Trading begins each day with an opening auction that sets the initial price for each security.
ECMA Transaction Fees
The Ethiopian Capital Market Authority charges a transaction fee on every trade executed on ESX, on top of any commission the trading member charges:
| Product | Transaction Fee |
|---|---|
| Shares | 0.15% of the value of the transaction |
| Fixed Income Securities | 0.005% of the value of the transaction |
Source: ECMA Fee Directive No. 996/2024, Part Five.