Board of Directors Secretariat

Capital Markets Authority Board of Directors Decision

No. 20 dated 9/7/2014

Regarding the Amendment of Certain Executive Rules for the Intra Day Trading Mechanism

Intra Day Trading in Shares

Capital Markets Authority Board of Directors

After reviewing Law No. (10) of 2009 concerning the regulation of supervision over non-Egyptian markets and financial instruments,

and Law No. (159) of 1981 concerning Joint Stock Companies, Commandite Companies by Shares, and Limited Liability Companies, and its executive regulations,

and Capital Market Law No. 95 of 1992, and the decisions issued in implementation thereof,

and the Statutes of the Capital Markets Authority issued by Presidential Decision No. (192) of 2009,

and Presidential Decision No. (191) of 2009 concerning the rules governing the management and financial affairs of the Egyptian Exchange,

and the Capital Markets Authority Board of Directors Decision No. 67 of 2012 issued on 8/10/2012,

and upon the approval of the Authority's Board of Directors at its meeting held on 9/7/2014.

Decided

(Article One)

Article One of the Executive Rules for Conducting Intra Day Trading in Shares, attached to Decision No. (67) issued on 8/10/2012, shall be replaced as follows:

A brokerage company wishing to obtain the Authority's approval to operate the Intra Day Trading mechanism must meet the following requirements:

1- Submit documentation confirming that the company belongs to Category (A) of the classification grades issued by the Egypt Clearing, Depository and Registry Company regarding settlement risks and the degree of compliance with settlement deadlines.

2- Submit documentation confirming the commencement of implementing corporate governance rules.

3- The company's record with the Authority must be free of any active penalties or measures issued by decisions of the Authority's Chairman or Board of Directors. Approval for a company subject to penalties or measures to operate under this mechanism shall not be granted until the following periods have elapsed:

/A Six months from the date of the actual deposit of the increased insurance amount or the correction of the violation, whichever is earlier.

/B Six months from the date of expiration of the suspension period from conducting business, or from the convening of the company's Board of Directors upon the Authority's request to convene the board to review the alleged violation.

/C Six months from the date of expiration of the business suspension period.

/D Twelve months from the date of appointment of the supervisory member to the company's Board of Directors, or from the date of appointing a new board in implementation of the decision to dissolve the board and appoint a commissioner to manage the company.

4- Submit a certified certificate from the company's legal advisor confirming that no final judicial ruling has been issued against it or against any of the individuals responsible for actual management on the date of the license application, concerning crimes affecting the interests of traders, within the five years preceding the submission of the application.

5- Verify the soundness of the company's financial position based on the last two audited balance sheets, accompanied by a report from the external auditor.

Submit documentation confirming the deposit of an amount not less than 25% of the company's average transaction value according to the aforementioned mechanism at one of the clearing banks approved by the Egypt Clearing, Depository and Registry Company, with a minimum of one million pounds held under the transaction settlement account according to this mechanism, or submitting a bank guarantee in favor of the Egypt Clearing, Depository and Registry Company for the same value, and providing a commitment from the person responsible for actual management at the brokerage company to increase the deposited amount at the clearing bank or the issued bank guarantee in case the company wishes to increase its transaction volume, provided that this amount does not fall below the equivalent of 25% of the company's average daily transaction value over the preceding three months, with the understanding that this insurance shall be processed with a 100% weighting factor when calculating net liquid capital.

7- The company must have a specialized department with no fewer than six employees, each of whom must meet the following conditions:

/A Practical experience of no less than two years in the field of stock exchange and securities business.

/B Completion of one of the training courses organized by the Authority or the Egypt Clearing, Depository and Registry Company, and the company's commitment to the specialized training programs.

/C No disciplinary penalties have been issued against them by the Exchange or the Authority during the three years preceding the approval request.

/D No criminal conviction or misdemeanor conviction for a crime involving moral turpitude or dishonesty, nor a declaration of bankruptcy, unless their reputation has been restored.

The Authority shall rule on the company's application within fifteen days from the date of meeting the necessary requirements to obtain the Authority's approval. In case of rejection, the rejection decision must be reasoned, and the company may appeal the rejection decision before the Authority's appeal committees, in accordance with the rules stipulated in the Capital Market Law and its executive regulations.

(Article Two)

This Decision shall be published in the Egyptian Gazette, and on the websites of the Authority, the Egyptian Exchange, and the Depository and Registry Company, and shall take effect from the day following its publication in the Egyptian Gazette.

Chairman of the Board of Directors
Sherif Samy
2014/7/9