Sunday 23/March/2025 – 05:00 PM
Misr Clearing Company and the settlement guarantee fund began to activate the necessary programs to settle the operations arising from the circulation of securities for the periods of which are less than the normal period T+2 times the value of the subscription of the fund members, starting from the trading session today, Sunday, March 23, 2025.
This comes in order to activate the decisions issued by the Board of Directors of the Financial Supervisory Authority regarding the development of the rules and procedures regulating the work of the settlement guarantee fund that works to reduce the risks arising from the representation of the opposite party in the settlements of the Central Country Clearing Risk.
The decision contributes to enhancing liquidity levels and trading in the stock market by enabling the entities of the fund members to request settlements of 6 times the amount of their subscription to the fund, as the settlement guarantee fund works to reduce the risks arising from the representation of the opposite party in the settlements of the Central County Clearing Risk.
This came within the framework of completing the ongoing efforts made by the Financial Supervision Authority, aimed at developing and stabilizing non -banking financial markets and protecting the rights of all dealers, and in an effort to take all necessary measures to enhance liquidity levels and stimulate trading, and increase the rate of rotation and stock movement, in order to support efforts to enhance the efficiency and competitiveness of the Egyptian stock market to play a more effective role in supporting economic development plans.
The Board of Directors of the General Authority for Financial Supervision issued Resolution No. 68 of 2024, regarding the regulation of the work of the settlement guarantee fund and the reduction of risks arising from the opposite party in the settlements, which was authorized for the fund member whose request to settle the rights and obligations arising from its circulation operations in the securities restricted to Egyptian exchanges with a value of up to 6 times the amount of his subscription in the fund for operations that are less than the normal period of T+2, and it is permissible The authority has a modification of the limit available for the Fund’s members to increase or by deficiency on the basis of market risks or special risks of the fund, while allowing the fund members to increase the value of their contributions in the fund’s capital.
It is reported that the General Authority for Financial Supervision approved the rules and executive procedures regulating the work of the settlement guarantee fund prepared by Egypt Clearing Company, during the month of March, in order to keep pace with the best global practices to make the settlement guarantee fund to work to reduce the risks arising from the representation of the opposite party in the settlements, where the concept of the Waterfall was applied, which allowed the fund’s increase by 650% of the value of member contributions.
