Capital Market Authority Board of Directors Decision

No. (69) of 2010
Dated 17/5/2010

Regarding the amendment of certain provisions of Capital Market Authority Board of Directors Decision No. 32 of 2002 concerning the trading rules for unlisted securities under the Automated Order Acceptance System

Chairman of the Board of Directors of the Capital Market Authority

Having reviewed the Capital Market Law issued by Law No. 95 of 1992 and its Executive Regulations; and the Central Deposit and Registration of Securities Law issued by Law No. 93 of 2000 and its Executive Regulations; and the Law Regulating Supervision over Non-Banking Financial Markets and Instruments issued by Law No. 10 of 2009; and Presidential Decree No. 191 of 2009 regarding the provisions governing the management and financial affairs of the Egyptian Exchange; and the Authority Board of Directors Decisions No. 11 of 1994, No. 32 of 2002, No. 12 of 2003, No. 37 of 2006, No. 126 of 2006, No. 40 of 2008, and No. 54 of 2009; and the approval of the Capital Market Authority Board of Directors in its session held on 17/5/2010.

Decision

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(Article One)

The paragraph concerning the basic determinants of the order market stipulated in the accompanying provisions to the Authority Board of Directors Decision No. 32 of 2002 regarding the trading system for unlisted securities on the exchange (Unlisted Securities Market) is replaced with the following text:

Basic Determinants of the Automated Order Acceptance System:

1. The Exchange shall announce the securities permitted for trading through this system, and brokerage firms shall inform their clients of the characteristics of trading under this system and the securities permitted for trading through it, and brokerage firms shall ensure the integrity of the trading operations they conduct and their compliance with governing laws, regulations, and decisions, particularly as follows:

   • Verifying the client's identity, their proof of ownership of the security, their status, and their eligibility to dispose of it.
   • Ensuring that trading is conducted on sound securities and in a manner free from fraud, deception, manipulation, exploitation, or fictitious speculation.

2. Brokerage firms shall verify that the buy orders issued to them for trading these securities match the form prepared by the Exchange, which must include data on the risks associated with trading through the aforementioned system, particularly regarding the non-applicability of disclosure rules applied to securities listed on the Exchange's boards.

3. The trading period shall be from 2:45 PM to 3:15 PM on Mondays and Wednesdays of each week.

4. No price limits shall be imposed, nor shall closing or opening prices be calculated for those securities, nor shall indices be calculated for their prices.

5. Settlement of transactions conducted through this system shall be on the third day following the transaction date (T+3).

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(Article Two)

The Egyptian Exchange and the Egyptian Clearing and Central Deposit Company shall establish the necessary executive procedures for the provisions contained in this Decision, particularly determining the transaction data to be disclosed and the method of such disclosure, which shall not take effect until approved by the Authority.

(Article Three)

This Decision shall be published in the Egyptian Gazette and shall take effect as of 1/7/2010.

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Dr. Ziad Bahaa El-Din
Chairman of the Board

Office of the Chairman
Capital Market Authority
46076

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