Regulatory Alerts2004-01-01
CMA Board of Directors Decision No. 29 of 2004 Regarding the Regulation of the Settlement Guarantee Fund
The Egyptian Capital Market Authority (CMA) issued Decision No. 29 of 2004 to establish a Settlement Guarantee Fund within the Egyptian Central Clearing, Depository and Registry Company (ECD) to ensure the fulfillment of obligations arising from securities transactions. The decision mandates that clearing members contribute to the fund based on their daily trading activity and a risk rate calculated from their settlement default history. It further details the fund's governance, investment rules, and the specific procedures for covering defaults, including the deduction of contributions and the imposition of penalties for late payments.
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