EGYPT: FRA Adopts the Rules and Executive Procedures Regulating the work of the Settlement Guarantee Fund

Monday March 3 2025

On 3^rd March 2025, the Financial Regulatory Authority (FRA) has approved the executive rules and procedures regulating the work of the Settlement Guarantee Fund issued by the Board of Directors of the Misr for Clearing, Depository and Central Registry Company (MCDR) in coordination with the Fund Management Committee, in implementation of the Authority’s Board of Directors’ Decision regarding regulating the work of the Settlement Guarantee Fund and reducing the risks arising from representing the counterparty in settlements, which aims to develop the work mechanisms of the Misr for Clearing, Depository and Central Registry Company to become compatible with the work mechanisms of the central clearing and settlement entities for securities operating in global markets (CCPs) as well as to meet the risks arising from the counterparty (Counterparty Risk).

The Authority also allowed the Fund member to request the settlement of rights and obligations arising from transactions executed on securities listed on the Egyptian Stock Exchanges at a value of up to 6 times the amount of his subscription to the Fund for transactions whose settlement period is less than the normal periods (T+2).

The Settlement Guarantee Fund is responsible for fulfilling the obligations arising from the trading of securities listed on the Egyptian Stock Exchanges and the financial and paper settlements resulting from those operations, in a way that limits the risks arising from the counterparty (Counterparty Risk).

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