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2007-01-01

Minister of Investment Decision No. (42) of 2007

Minister of Investment Decision No. 42 of 2007 establishes three specialized working groups and a coordination committee to oversee the development of a spot and futures commodities exchange in Egypt. The groups are tasked with drafting the necessary legislative framework, preparing a request for proposals, formulating operational rules, and defining the structure of the regulatory oversight body. The coordination committee will manage technical assistance partnerships, monitor working group progress through monthly reports, and ensure the timely execution of the exchange's establishment program.

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Egypt

Financial Regulatory Authority Egypt

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Ministry of Investment

The Minister

Decision

Minister of Investment

No. (42) for the Year 2007

The Minister of Investment; Having reviewed Law No. 95 of 1992 issuing the Capital Market Law, its Executive Regulation, and Law No. 141 of 1994 issuing the Law on Establishing the Spot Commodity Exchange for Cotton, and Law No. 17 of 1999 issuing the Commercial Law, and Presidential Decision No. 231 of 2004 on organizing the Ministry of Investment, and upon the presentation by the Senior Advisor for Financial Affairs.

Decided

(Article One)

Working groups shall be formed to oversee the implementation of the program and requirements for establishing a spot and futures commodities exchange, specifically as follows:

  1. Preparing the legislative framework for establishing and regulating spot and futures commodities exchanges.
  2. Preparing a draft Request for Proposals (RFP) for establishing commodities exchanges.
  3. Preparing and implementing the exchange's rules of operation.
  4. Studying the role, tasks, and organization of the regulatory body overseeing commodities exchanges.

(Article Two)

The working groups referred to in the preceding article shall be formed as follows:

First: A working group to prepare the draft law on spot and futures commodities exchanges, chaired by Mr. Advisor Mohamed Mahmoud El-Dakrouri, with the membership of the following gentlemen:

  1. Representative of the Ministry of Agriculture and Land Reclamation.
  2. Representative of the Egyptian Capital Market Authority.
  3. Representative of the Cairo and Alexandria Exchanges.
  4. Representative of the Egyptian Central Clearing, Settlement and Custody Company.
  5. Four experts from the Financial Services Project (EFS) and the Financial Services Volunteer Corps (FSVC).

Second: A working group to prepare the rules of operation for the spot and futures commodities exchange, with the membership of the following gentlemen:

  1. Dr. Islam Abdel Azeem Azam, Professor of Finance at the American University.
  2. Representative of the Egyptian Capital Market Authority.
  3. Representative of the Cairo and Alexandria Exchanges.
  4. Representative of the Egyptian Central Clearing, Settlement and Custody Company.
  5. Representative of the Union of Agricultural Exporters.
  6. Four experts from the Financial Services Project (EFS) and the Financial Services Volunteer Corps (FSVC).

Third: A working group formed by the Egyptian Capital Market Authority in cooperation with experts from the Financial Services Project (EFS) and the Financial Services Volunteer Corps (FSVC) to prepare rules regarding the tasks and organization of the regulatory body overseeing commodities exchanges.

(Article Three)

A committee for coordination and overseeing the implementation of the program and requirements for establishing the spot and futures commodities exchange shall be formed with the membership of the following gentlemen:

  1. Mr. Abdel Hamid Ibrahim, Senior Advisor to the Minister of Investment for Financial Affairs.
  2. Mr. Hany Yahya Farhat, Economic Expert at the Minister of Investment's Office.
  3. Mr. Mohamed Fared, Economic Expert at the Minister of Investment's Office.

The committee shall participate in and supervise the work of the working groups stipulated in Article Two of this Decision, and shall undertake the following:

  1. Preparing a draft Request for Proposals (REP) for establishing the spot and futures commodities exchange.
  2. Coordinating with technical assistance projects responsible for providing technical support for the exchange establishment project.
  3. Preparing monthly reports on the working groups' achievements.

(Article Four)

The competent authorities are tasked with implementing this Decision within their respective jurisdictions.

Issued at the Ministry of Investment On 1 Safar 1428 AH Corresponding to 19 February 2007

Minister of Investment Dr. Mahmoud Mohieldin

Deputy Minister (Sayed Salout)

Copy sent to Mr.

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