Regulatory Alerts2021-01-01
Financial Regulatory Authority Board of Directors Resolution No. (82) for the Year 2021 Regarding the Regulation of Intraday Trading on Bonds Listed on the Egyptian Exchange
The Financial Regulatory Authority issued Resolution No. (82) of 2021 to authorize and regulate intraday trading for bonds listed on the Egyptian Exchange. The resolution permits same-day settlement and clearing, enabling licensed brokerage firms to sell all or part of bonds purchased within the active trading session. It mandates the implementation of automated systems and real-time cancellation protocols by the Exchange and Central Depository, alongside compulsory daily automated reporting of trading data to the Authority.
FINANCIAL REGULATORY AUTHORITY
Chairman of the Authority
Board of Directors Resolution No. (82) for the Year 2021 dated 2021/6/6 Regarding the Regulation of Intraday Trading on Bonds Listed on the Egyptian Exchange (Intra Day Trading)
Board of Directors of the Financial Regulatory Authority
Having reviewed the Capital Market Law issued by Law No. (95) of 1992 and its Executive Regulations; and the Law No. (10) of 2009 regulating supervision over non-banking financial markets and instruments; and the Central Depository and Registration of Securities and Financial Instruments Law issued by Law No. (93) of 2000; and the Authority's Board of Directors Resolution No. (67) of 2012 regarding the mechanism for intraday trading in shares; and upon approval by the Authority's Board of Directors in its meeting held on 2021/6/6;
Resolved
(Article One) Settlement and clearing operations for transactions executed on bonds listed on the Egyptian Exchange may be carried out on the same day after the end of the trading session. Furthermore, intraday trading in bonds (buying and selling) is permitted through the sale of all or part of what was purchased in the same trading session. This shall be in accordance with the executive rules issued by the Central Depository and Registration Company for Securities and approved by the Authority.
(Article Two) Intraday trading in bonds listed on the Egyptian Exchange shall be conducted through securities brokerage companies that have obtained the Authority's approval for intraday trading in shares, in accordance with the aforementioned Board of Directors Resolution No. (67) of 2012. Licensed companies engaged in trading, brokerage, and dealing in bonds may also conduct intraday trading in bonds listed on the Egyptian Exchange, provided they meet the conditions required for securities brokerage companies as mentioned in the preceding paragraph.
Smart Village, Building 136, Giza, Egypt Postal Code: 110 Tel: +202 35345350 Fax: +202 35370036 WWW.FRA.GOV.EG
FINANCIAL REGULATORY AUTHORITY
Chairman of the Authority
(Article Three) The Egyptian Exchange and the Central Depository and Registration Company shall prepare and equip automated systems and technical requirements for operating the intraday trading mechanism for bonds.
(Article Four) The Egyptian Exchange shall establish a supervision system for intraday bond trading operations and intervene immediately to cancel non-compliant transactions during the trading session. The Egyptian Exchange is obligated to notify the Authority at the end of each trading session of all transactions cancelled according to the intraday trading mechanism, along with the justification for cancellation.
(Article Five) The Central Depository and Registration Company is obligated to automatically provide the Authority, at the end of each working day, with data on intraday bond trading regarding clients, traded bonds, and participating brokerage companies.
(Article Six) This Resolution shall be published in the Egyptian Gazette and on the websites of both the Authority and the Egyptian Exchange, and shall take effect from the day following its publication in the Egyptian Gazette.
Chairman of the Board of Directors Dr. Mohamed Omran
Smart Village, Building 136, Giza, Egypt Postal Code: 110 Tel: +202 35345350 Fax: +202 35370036 WWW.FRA.GOV.EG