Back to the complete issue
Monday, 24 August 2020

FRA wants private sector to hold ownership stake (and possibly majority) in upcoming futures exchange

SMART POLICY- FRA wants private sector to own a chunk (and possibly a majority stake) of the futures exchange: It appears that the Financial Regulatory Authority (FRA) wants the private sector to hold a stake in the long-awaited futures exchange, FRA Vice President Khaled El Nashar told Hapi Journal on Sunday. The move is part of the regulator’s plan to tap the expertise of private-sector financial institutions and is meant to privatize the market from the get go, staving off any future calls for privatization, as is the case today with the EGX, El Nashar added. El Nashar also suggested that Misr Clearing and Depository Company (MCDR) should be opened to private-sector ownership. The FRA could go so far as to sell the private sector a majority stake, he suggested.

Keep an eye on a meeting tomorrow with top players in the finance industry: Plans for the futures exchange will be on the agenda tomorrow when the FRA meets a with number of Egypt’s leading financial institutions. Private-sector commercial and investment banks as well as insurance companies will be at the table along with representatives from the EBRD and the International Finance Corporation. Joining from the government side: FRA, MCDR, and the EGX, El Nashar said.

This is the first high-level public discussion of the futures exchange since EGX boss Mohamed Farid said pre-covid that Egypt could launch derivatives trading in 1H2020. We had also heard last year that MCDR and the EGX were finalizing the regulations and infrastructure needed to launch derivatives trading, which would see derivatives trades settled through a new electronic platform, but no updates on that have come out.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.