Regulatory Alerts2021-01-01
Board of Directors Decision No. (9) of 2021 Regarding Conditions and Procedures for Licensing Clearing and Settlement Operations for Contracts Traded in Futures Exchanges (as amended on 2023/8/9)
The Egyptian Financial Regulatory Authority (FRA) issued Board of Directors Decision No. (9) of 2021, as amended, to establish mandatory licensing conditions and application procedures for companies seeking to operate clearing and settlement services for futures exchange contracts. The regulation mandates a minimum issued capital of 100 million EGP, restricts corporate purpose to clearing and settlement activities, requires specific executive departments and experienced management, and imposes strict criminal and insolvency background checks on founders and key executives. Applicants must submit a standardized form with detailed shareholder disclosures, technical capability declarations, and full-time management commitments, with the Authority required to adjudicate complete applications within thirty days.