الهيئة العامة للرقابة المالية

This regulation authorizes CCP’s members to request settlements up to six times their subscription. Financial Regulatory Authority (FRA) may amend this limit, either upward or downward, based on prevailing market risks or the specific risk profile of members.

These amendments enable CCP’s members to increase their capital contributions, thereby leveraging T+1 transaction settlements at a multiplier of six times their subscription.

In adherence to the Financial Regulatory Authority (FRA) Board of Directors’ decrees, designed to strengthen the Clearing Counterparty’s (CCP) operational framework and mitigate Central Counterparty Clearing Risk, Misr for Central Clearing, Depository and Registry (MCDR) and the CCP have launched programs facilitating expedited securities transaction settlements below the standard T+2 cycle. These settlements, leveraging a six-fold multiplier of member subscriptions, will become effective from the trading session of Sunday, March 23, 2025.

The said decree aims at boosting liquidity and trading volumes within the securities market, empowering members to request settlements up to six times their subscriptions. This aligns with the CCP’s core function of reducing Central Counterparty Clearing Risk.

This action forms part of FRA’s ongoing strategy to develop and stabilize non-bank financial markets, safeguard market participant rights and implement measures to bolster liquidity, stimulate trading activity and increase stock turnover. These efforts aim to enhance the efficiency and competitiveness of the Egyptian securities market, enabling it to effectively contribute to national economic development plans.

FRA Board issued Decree No. 68 of 2024 to enhance the Clearing Counterparty’s (CCP) operational mechanisms and mitigate counterparty risk in settlement processes. The decree authorized CCP members to request settlement of obligations arising from transactions in Egyptian Stock Exchange-listed securities, up to six times their subscription, for transactions settling in periods shorter than the standard T+2 cycle. FRA retains the discretion to adjust members’ settlement limits, either upward or downward, based on prevailing market risks or the specific risk profiles of members, while also enabling them to increase their capital contributions to the CCP.

In March, FRA approved the operational rules and procedures for the Clearing Counterparty (CCP), as developed by Misr for Central Clearing, Depository and Registry (MCDR), to align with global best practices for mitigating counterparty settlement risks. This approval featured the implementation of a ‘WATERFALL’ mechanism, which augmented the CCP’s resources by 650% relative to members’ subscriptions.