Regulatory Alerts2026-04-22
Circular dated April 22, 2026 regarding controls for financing margin purchases of securities
The Central Bank of Egypt has mandated new regulatory requirements for margin trading financing, requiring banks to establish board-approved policies that set maximum limits on total funding, individual client exposure, sectoral concentration, and off-index securities. Banks must implement automated systems for daily valuation, ensure all financed securities are held in custody by the bank, and strictly prohibit financing the purchase of the bank's own shares or related-party interests. These regulations are effective immediately, with a six-month grace period provided for financial institutions to bring existing portfolios into compliance.
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