FRA and EGX approve new regulations to boost trading
19 September 2018 Cairo
Image: Shutterstock
Egypt’s Financial Regulatory Authority (FRA) and Stock Exchange (EGX) have approved five new regulations to boost stock exchange trading.
The FRA and EGX have put in place and expansion of the daily threshold for listed securities price circuit breakers, so that they can freely move up or down with a limit of 20 percent (cumulatively through the pre-opening session and the daily trading session).
In addition, they have stated that from now on any temporary stoppage of listed securities will be up to 10 percent instead of 5 percent.
FRA and EGX have also stated that there will be a decrease in the temporary stoppage time from 15 minutes to 10 minutes and the application of marginal trading and T+0 mechanisms on newly listed securities, once they meet specialised activities criteria.
There will also be an issuance of regulations managing the market maker mechanism on listed securities.
This package comes in the wake of the news announced earlier this month that short-selling will be introduced to Egypt’s markets at the beginning of 2019.
The FRA announced on 5 September that it will finalise the framework that will govern the short-selling mechanism by the end of this month.
Following the finalisation of the short-selling regulations, the EGX and the MCDR central depository and registry are committed to hold several trainings sessions along with the brokerage companies in order to ensure readiness before the go live, which will be declared officially before the beginning of 2019.
The FRA and EGX have put in place and expansion of the daily threshold for listed securities price circuit breakers, so that they can freely move up or down with a limit of 20 percent (cumulatively through the pre-opening session and the daily trading session).
In addition, they have stated that from now on any temporary stoppage of listed securities will be up to 10 percent instead of 5 percent.
FRA and EGX have also stated that there will be a decrease in the temporary stoppage time from 15 minutes to 10 minutes and the application of marginal trading and T+0 mechanisms on newly listed securities, once they meet specialised activities criteria.
There will also be an issuance of regulations managing the market maker mechanism on listed securities.
This package comes in the wake of the news announced earlier this month that short-selling will be introduced to Egypt’s markets at the beginning of 2019.
The FRA announced on 5 September that it will finalise the framework that will govern the short-selling mechanism by the end of this month.
Following the finalisation of the short-selling regulations, the EGX and the MCDR central depository and registry are committed to hold several trainings sessions along with the brokerage companies in order to ensure readiness before the go live, which will be declared officially before the beginning of 2019.
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