EGX Board Sets the OTC market executive regulations
The EGX Board has approved setting rules that will allow the EGX Chairman to intercept the codes from transactions if there are irregularities in trading.
The Egyptian Exchange (EGX) Board in its latest meeting approved the executive procedures of trading rules, the deals market’s mechanisms and announcing them for non-listed securities in the light of the Egyptian Financial Supervisory Authority (EFSA) decision No. 17 dated 8 February 2017.
The EGX Board approved a set of proposed points to be included in the Executive Regulations on practices that are harmful for trading. These Regulations give the EGX Chairman the right to take any action necessary to prohibit the customer taking advantage of a bid. This allows for a regulated mechanism when dealing in the market, whether on one security or on a group of securities or on the level of the market as a whole. The Regulations cover trades for a period not exceeding one month and if a trader or group of traders are violating the capital market regulations the Chairman has rights to execute those regulations.
These Regulations shall remain in place until the end of EFSA investigation into the cases transferred from the EGX. The EFSA, in light of those investigations, could take a decision with regard to the EGX suspension that the chairman enacted, whether to reduce the suspension period, approve it or increase it. Those decisions will be activated upon adoption by EFSA.