Regulatory Alerts2011-01-01
Prime Minister's Decree No. 345 of 2011
Prime Minister Essam Sharaf issued Decree No. 345 of 2011 to amend Article 295 of the Executive Regulations of the Capital Market Law No. 95 of 1993, establishing strict margin trading debt thresholds and collateral requirements for securities firms. The decree mandates that firms must notify clients to reduce debt ratios to 70% or 85% for government bonds upon market value declines, and authorize forced sales or collateral substitution if ratios hit 80% or 90%. It further specifies acceptable collateral types, including unconditional bank guarantees, frozen deposits, and securities valued at 90% or 60% respectively, while granting the Financial Regulatory Authority discretion to adjust acceptable guarantees based on market conditions.
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