Regulatory Alerts2021-01-01
Board of Directors Decision No. (9) of 2021 Regarding Conditions and Regulations for Licensing Clearing and Settlement Operations for Contracts Traded in Futures Exchanges
The Financial Regulatory Authority of Egypt issued Board Decision No. (9) of 2021 to establish mandatory licensing conditions and regulatory controls for companies seeking to conduct clearing and settlement operations for futures contracts. The decision mandates a minimum paid-up capital of 100 million Egyptian pounds, restricts corporate purpose to futures clearing and settlement, and requires qualified board members, a Managing Director with ten years of financial experience, and specific executive departments including risk management and internal audit. Applicants must submit detailed ownership disclosures, compliance declarations, and a 100,000 Egyptian pound fee, with the Authority obligated to adjudicate complete applications within thirty days while applying existing non-banking financial activity governance and anti-money laundering standards.