Regulatory Alerts2014-01-01
Chairman of the Authority Decision No. (218) of 2014 Regarding the Regulation of Exchange-Traded Funds Operations
The Capital Market Authority issued Decision No. (218) of 2014 to establish the comprehensive regulatory framework for the licensing, operation, and disclosure of Exchange-Traded Index Funds in Egypt. The decision mandates minimum paid-up capital, defines critical valuation metrics such as net asset value and tracking error, and requires formal contracts with licensed investment managers, custodians, and market makers. It further enforces continuous portfolio rebalancing, strict correlation maintenance between fund documents and underlying indices, and specific liquidity provision obligations for market makers to safeguard market integrity.
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