Chairman of the Board of Directors

Decision of the Board of Directors of the Authority No. (106) of 2011

Dated 18/12/2011
Amending certain provisions of Board of Directors Decision No. (21) of 2009 Regarding Approval to Operate the Intra-Day Trading System (Intra Day Trading)

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Board of Directors of the General Authority for Financial Supervision

Having reviewed Law No. 159 of 1981 concerning Joint Stock Companies, Companies Limited by Shares, and Limited Liability Companies and the decisions issued to implement it; and Capital Market Law No. 95 of 1992 and the decisions issued to implement it; and Central Depository and Registration of Securities Law No. 93 of 2000 and its executive regulations; and Law No. 10 of 2009 regulating supervision over markets and non-banking financial instruments; and Presidential Decree No. 191 of 2009 issuing the regulations governing the management and financial affairs of the Egyptian Exchange; and Presidential Decree No. 192 of 2009 issuing the Statute of the General Authority for Financial Supervision; and Board of Directors Decision of the Authority No. (21) of 2009 regarding Approval to Operate the Intra-Day Trading System; and the approval of the Board of Directors of the General Authority for Financial Supervision in its sessions held on 24/8/2011 and 18/12/2011;

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Has Decided

(Article One)

The following text replaces paragraph (7) of Article One of Board of Directors Decision of the General Authority for Financial Supervision No. (21) of 2009:

(a) Evidence of depositing an amount not less than 25% of the company's average transaction value according to this mechanism with one of the clearing banks approved by the Egyptian Company for Clearing, Depository and Central Registration, with a minimum of one million Egyptian pounds, under the technical company's transaction settlement account according to this mechanism, or providing a bank guarantee in favor of the Egyptian Company for Clearing, Depository and Central Registration for the same value, along with a commitment from the person responsible for the actual management of the brokerage company to undertake to increase the deposited amount with the clearing bank or the issued bank guarantee in case the company wishes to increase its transaction volume, such that this amount's value remains not less than 25% under all circumstances of the company's annual average transaction value, with the understanding that this guarantee shall be processed with a weighting factor of 100% when calculating net liquid capital."

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Article (3):

The daily transaction value for a single client must not exceed 1/20,000 (one twenty-thousandth) of the number of shares of the company listed on the exchange tables. The Chairman of the Authority may amend the ratio mentioned in the preceding paragraph if market conditions so require.

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Article (8):

Subject to the trading process, the daily transactions of the brokerage company under this system shall be limited to four times the amount deposited with the clearing bank or provided as a bank guarantee in favor of the Egyptian Company for Clearing, Depository and Central Registration, in implementation of the provision of paragraph (a) of Article (1) of these Rules.

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(Article Two)

This Decision shall take effect from the day following its issuance, and all companies and entities addressed to it, as well as the competent administration within the Authority, shall implement what pertains to each.

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Chairman of the Board of Directors of the Authority Ashraf El-Sharkawy

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General Authority for Financial Supervision Egyptian Financial Supervisory Authority (EFSB)

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Al-Dariya Al-Hakima, Building 15 - 84 B
Kilometer 18, Cairo/Alexandria Desert Road 6th of October Governorate, Postal Code: 11577 Telephone: 02-27527040 Fax: 02-27524522 Email: info@efsa.gov.eg Website: www.efsa.gov.eg