FRA signs off on same-day trading for category B of securities eligible for special activities
REGULATION WATCH- FRA signs off on same-day trading for category B of securities eligible for ‘special activities’: The Financial Regulatory Authority (FRA) signed off yesterday on a proposal from the EGX that allows same-day trading on stocks that are on its category ‘B’ list of securities eligible for “specialized activities.” The policy will allow brokerage firms freedom to decide which securities from the list to make eligible for T+0 trades, according to an FRA statement.
Background: The move is the latest in string of policy amendments that aim to boost stock market liquidity by introducing new trading tools and mechanisms. Earlier this month, the FRA was said to be scraping a rule requires listed companies to seek approval from the FRA and the EGX for stock splits. The authority had also had also decided to slash annual service fees for listed companies, introducing a new tiered system that sets fees based on capital.