Decision of the Chairman of the Authority No. (847) for 2023

The Chairman of the Financial Regulatory Authority issued Decision No. 847 of 2023, requiring approved securities brokerage companies and custodians to monitor via the Egyptian Exchange the volume of financing granted to clients and related groups at the market level, alongside the collateral-to-financing ratio. These entities must further develop these metrics and prepare a designated study for all margin purchase clients within three months of the decision's effective date. The Decision takes effect the day after publication in the Egyptian Gazette and on the official websites of the Authority and the Exchange.

Financial Regulatory Authority

FINANCIAL REGULATORY AUTHORITY

Chairman of the Authority

Decision No. ( 847 ) for 2023

Dated: 30/3/2023

Regarding the Obligations of Securities Brokerage Companies

or Custodians Approved by the Authority to Conduct Margin Purchase Operations of Securities in Implementation of the Authority's Board Decision No. (77) for 2023

Chairman of the Financial Regulatory Authority

Having reviewed the Capital Market Law issued by Law No. (95) of 1992 and its Executive Regulations; and the Law No. (10) of 2009 regulating supervision over non-Egyptian markets and financial instruments; and the Presidential Decision No. (191) of 2009 regarding the rules governing the management and financial affairs of the Egyptian Exchange; and the Presidential Decision No. (192) of 2009 issuing the Statute of the Financial Regulatory Authority; and the Board Decision No. (67) of 2014 regarding the rules and conditions for securities brokerage companies and custodians to conduct margin purchase operations of securities, including amendments thereto.

Decided

Article One

Securities brokerage companies or custodians approved by the Authority to conduct margin purchase operations of securities are required, through the Egyptian Exchange, to inquire about the volume of financing granted to clients and their related groups at the market level, as well as the collateral ratio to total financing, and to develop them. The brokerage company or custodian, as applicable, must prepare the study referred to in Item (1) of Article Four of Board Decision No. 67 of 2014 within a maximum period of three months from the effective date of this decision for each of its margin purchase clients.

Article Two

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 date.

Chairman of the Board

Financial Regulatory Authority
Dr. Mohamed Fared Saleh

ARAB REPUBLIC OF EGYPT
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