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.