Regulatory Alerts2014-01-01
EFSA Board of Directors Decision No. 38 of 2014 Regarding Contracting with a Single Market Maker for Index Funds
The Egyptian Financial Supervisory Authority (EFSA) issued Decision No. 38 of 2014 to establish regulatory controls for index funds contracting with a single market maker. The decision mandates that funds obtain prior board approval by justifying the need for a single maker and outlining future plans, while strictly limiting issued documents to 20% of net equity and requiring enhanced liquidity commitments of 150% during trading sessions. These regulations aim to ensure market stability and adequate liquidity provision in the absence of multiple market makers for specific index funds.
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