news & events
EGX Granted the Power to Reverse Transactions
In an effort to maintain the stability and security of transactions conducted on the Egyptian Stock Exchange (the “EGX”), the Financial Regulatory Authority (the “FRA”) has approved the EGX’s proposal to reverse transactions that may have violated trading rules.

The EGX now has the power to request securities brokers to reverse transactions via requiring the seller to buy back the shares from the buyer. In doing so, the EGX will assess how to address the impact of such mechanism on the calculation of the shares’ closing price.

The goal of such mechanism is to adopt and apply a principle of gradualism in cracking down violating trades without resorting to measures that may harm market stability. Furthermore, this mechanism greatly contributes to protecting stock trading from manipulation, which may be carried out by a particular investor or brokerage company through its clients.

In addition to the above, it has been disclosed that the EGX has further obtained the FRA’s approval on various measures relating to trading violations. It is unclear at this stage what said measures entail.

Market Reaction

Mr. Yasser ElMasry, Managing Director at the Arab African International Securities Brokerage, indicated that the new measure provides a strong message of reassurance to all market players regarding the use of control mechanisms on the market.
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Egypt’s Central Bank Hikes Key Interest Rates by 2% and Currency Slides to Record Low
October 27, 2022
Egypt’s Central Bank Hikes Key Interest Rates by 2% and Currency Slides to Record Low

In an exceptional unscheduled meeting convened on October 27th, 2022, the Central Bank of Egypt (“CBE”) lifted the deposit and lending rate by 200 bps to reach 13.25% for the overnight deposit rate and 14.25% for the overnight lending rate. In a statement released on Thursday morning, the CBE stated that the decision is primarily […]

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The New Amendments encouraging Public-Private Partnerships
September 20, 2022
The New Amendments encouraging Public-Private Partnerships

Following amendments that were introduced to the Public-Private Partnerships Law (the “PPP Law”) in December 2021, the Prime Minister issued Decree No. 3217 on 13 September 2022 (the “Amendment”) amending the Executive Regulations of the PPP Law issued by virtue of the Prime Minister Decree No. 238 of 2011 (the “ER”). The Amendment provides more […]

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