Back to the complete issue
Monday, 14 September 2020

FRA requires futures exchange company to separate CEO, MD, chairman

REGULATION WATCH- FRA requires futures exchange operating company to separate CEO, MD, chairman positions: The Financial Regulatory Authority (FRA) issued a decree yesterday requiring the joint-stock company that will be set up to operate the planned futures exchange to separate the positions of CEO, chairman, and managing director. The decree also mandates that the company’s chairman and executive board members serve three terms that do not exceed nine years in a bid to improve governance.

Background: In a meeting late last month, the FRA formed a working group to complete regulations and guidelines governing the futures exchange after the introduction of derivatives trading was made possible through 2018 amendments to the executive regulations of the Capital Markets Act. We’ve been getting encouraging signals from FRA boss Mohamed Omran and deputy chairman Khaled El Nashar that the private sector will hold shares in the exchange.

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; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.