Regulatory Alerts2011-01-01
Authority Board of Directors Decision No. (107) of 2011
The Egyptian Financial Supervisory Authority (EFSN) issued Decision No. (107) of 2011 to amend specific provisions of its 2008 regulations governing Intra-Day Trading. The decision mandates that brokerage firms deposit at least 25% of their average transaction value (minimum one million Egyptian pounds) or provide an equivalent bank guarantee with the Egyptian Depository, Central Clearing and Registration Company, while requiring management commitments to maintain this ratio if trading volumes increase. These updated capital and guarantee requirements are weighted at 100% for net liquid capital calculations and take effect immediately upon publication.
Chairman of the Board of Directors
Authority Board of Directors Decision No. (107) of 2011
Dated 12/18/2011
Amending certain provisions of the Authority Chairman's Decision No. (24) of 2008
Regarding the Intra-Day Trading Activity (Intra Day Trading)
Board of Directors of the Egyptian Financial Supervisory Authority
After reviewing Law No. 159 of 1981 on Joint Stock Companies, Companies Limited by Shares, and Limited Liability Companies, and the executive decisions issued thereunder;
On the Capital Market Law No. 95 of 1992, and the executive decisions issued thereunder;
On the Central Depository and Registration of Securities Law No. 93 of 2000, and its executive regulations;
On Law No. 10 of 2009 on Regulating Supervision over Non-Banking Financial Markets and Securities;
On Presidential Decree No. 191 of 2009 on the Rules Governing the Management and Financial Affairs of the Egyptian Exchange;
On Presidential Decree No. 192 of 2009 Issuing the Statute of the Egyptian Financial Supervisory Authority;
On Decision of the Chairman of the Board of Directors of the General Authority for the Capital Market No. (24) of 2008 Regarding the Intra-Day Trading Activity;
On the Approval of the Board of Directors of the Egyptian Financial Supervisory Authority in its sessions held on 24/8/2011, and on 12/18/2011;
Has Decided
(Article One)
The following texts shall replace the text of Clause (a) of Article (1), and Articles (3, 8) of the Rules Governing the Intra-Day Trading Mechanism stipulated by the Chairman of the Board of Directors of the General Authority for the Capital Market Decision No. (24) of 2008:
Article (1):
- It shall submit proof of depositing an amount not less than 25% of the company's average transaction value under that system with one of the clearing banks approved by the Egyptian Depository, Central Clearing and Registration Company (ECI), with a minimum of one million Egyptian pounds, under the company's cash settlement account for transactions under this mechanism, or submit a bank guarantee in favor of the Egyptian Depository, Central Clearing and Registration Company for the same value, and submit a commitment from the person responsible for the actual management of the brokerage company to undertake to increase the value of the deposited amount with the clearing bank or the issued bank guarantee in case the company wishes to increase its transaction volume, so that the value of this amount remains not less than 25% under all circumstances of the company's annual average transaction value, provided that this guarantee shall be processed with a weighting factor of 100% when calculating the net liquid capital.
(Article Two)
This Decision shall take effect from the day following its issuance, and all companies and entities addressed to it, as well as the competent administration within the Authority, shall implement it according to their respective responsibilities.
Chairman of the Board of Directors of the Authority
Mohamed El Sharkawy
Ashraf El Sharkawy
46076
Egyptian Financial Supervisory Authority
Egyptian Financial Supervisory Authority (EFSN)
Arabic: Telephone: 22222222 - Fax: 22222222
Email: info@efsa.gov.eg
Website: www.efsa.gov.eg
Address: Cairo, Dokki, Building 15-16, Al Kawkab 28, Cairo/Alexandria Desert Road, P.O. Box 1657, Postal Code: 11572