Regulatory Alerts2018-01-01
Capital Market Authority Board of Directors Decision No. (96) of 2018
The Capital Market Authority (CMA) Board of Directors issued Decision No. (96) of 2018 to amend its regulations governing intra-day share trading. The decision requires listed companies to maintain a specialized trading department staffed by at least three qualified individuals and limits a single client’s same-day purchase balance reservation to one ten-thousandth of the company’s total listed shares. Additionally, it allows clients to execute multiple same-day trades up to the maximum order limit, provided that all reserved purchased quantities are sold within the same trading session.
Chairman of the Authority
Capital Market Authority Board of Directors Decision
No. (96) of 2018 dated 10/6/2018 Regarding the amendment of the Authority Board of Directors Decision No. (67) of 2012 Regarding the mechanism for trading shares within the same session (Intra Day Trading)
The Capital Market Authority Board of Directors After reviewing the Joint Stock Companies, Commandite by Shares and Limited Liability Companies Law issued by Law No. (159) of 1981 and its Executive Regulations, and the Capital Market Law issued by Law No. (95) of 1992 and its Executive Regulations and amendments thereto, and the decisions issued pursuant to them, and the Central Depository and Registration of Securities Law issued by Law No. (93) of 2000 and its Executive Regulations, and Law No. (10) of 2009 regarding the regulation of supervision over non-banking financial markets and instruments, and Presidential Decree No. (191) of 2009 regarding the provisions organizing the Egyptian Exchange and its financial affairs, and Presidential Decree No. (192) of 2009 issuing the Basic Statute of the Capital Market Authority, and the Capital Market Authority Board of Directors Decision No. (67) of 2012, and the approval of the Authority Board of Directors on 10/6/2018
Decided
(Article One)
Item No. (7) of Article One of the Executive Rules for the Mechanism for Trading Shares Within the Same Session under the Authority Board of Directors Decision No. (67) of 2012 regarding the mechanism for trading shares within the same session is replaced with the following item:
- The company must have a specialized department with no fewer than three employees -and such as to meet the requirements stipulated in this Decision- each of whom must meet the following conditions:
a. ……………………………………………………
b. ……………………………………………………
c. ……………………………………………………
(Article Two)
Article Four of the Executive Rules for the Mechanism for Trading Shares Within the Same Session under the Chairman of the Authority Board of Directors Decision No. (67) of 2012 regarding the mechanism for trading shares within the same session is replaced with the following text:
"The quantity of the balance reservation order available for same-day purchase for a single client must not exceed 1/10,000 (one ten-thousandth) of the number of shares of the company listed on the Exchange, and the Authority may, in circumstances it determines, amend the aforementioned ratios to serve the best interest of the market and its participants.
The client may repeat trading in the same security more than once in the same session at the same maximum order quantity limit, provided that the reserved quantity purchased is sold within the same session."
(Article Three)
This Decision shall be published in the Egyptian Gazette and on the websites of the Authority and the Egyptian Exchange, and shall take effect from the day following its publication in the Egyptian Gazette.
Chairman of the Authority Board of Directors Dr. Mohamed Omran
Capital Market Authority Office of the Chairman
Smart Village, Building No. B-136, Giza, Egypt Postal Code: 12577 Tel.: +202 35345350 - Fax: +202 35345350 info@fra.gov.eg
Smart Village, Building no. B-136, Giza Postal Code: 12577 Tel.: (00202) 35345350 - Fax.: (00202) 35370036 www.FRA.gov.eg