Regulatory Alerts2014-01-01
Capital Markets Authority Board Decision No. (37) of 2014 Concerning Solvency Standards for Companies Licensed to Conduct Market Maker Activities
The Capital Markets Authority issued Board Decision No. (37) of 2014 to impose specific solvency standards on licensed market maker companies. The regulation sets a minimum issued and paid-up capital of ten million Egyptian pounds and introduces precise weighting rules for current assets and liabilities, including settlement transactions, index fund holdings, and borrowed securities, to mitigate market volatility risks. Additionally, it mandates that market makers continuously maintain a net liquid capital of at least 10% of their total weighted liabilities or six months of operating expenses, whichever is higher.
Share