Welcome requirements of the contract stock exchange ownership structure

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Fathallah: Representing institutions with the ownership structure will lead to the solidity and credibility of the entity and its taking an institutional form

Yaqoub: Futures contracts are one of the most important mechanisms that will attract investors

The Board of Directors of the Financial Supervisory Authority approved the terms of the ownership structure of the Futures Exchange Company and the Private Clearing Company, at its board meeting Monday, and the conditions included that their ownership structure includes financial institutions with solvency and experience in the field of stock exchange work, with no less than 75% of their capital shares.

Mohamed Omran, Chairman of the Authority, stressed that the share of the person and persons associated with him should not exceed 10% of the company’s total capital shares.

He explained that a futures exchange company may offer what does not exceed 25% of its shares for public subscription at any time, taking into account the availability of these controls and standards in the ownership structure of each of the contracts exchange company and its clearing company – in case of establishing a holding company that owns both companies Futures exchange and clearing company.

The Board of Directors of the Authority was presented with the recommendation of the working group formed to study the controls and criteria for the ownership structure of the Futures Exchange Company and the clearing company – or settlement – related to its dealings.

The group includes representatives from the Central Bank, the Egyptian Stock Exchange, the Misr for Central Clearing, Depository and Registry Company, the Federation of Egyptian Banks, the Egyptian Insurance Federation, a representative of investment banks, and the European Bank for Reconstruction and Development (EBRD).

Mohamed Fathallah, Chairman of the Board of Directors of Blum Egypt Trading Company, said that the Authority’s intervention to regulate conditions again and set controls for the ownership of the Futures Exchange Company is a positive thing.

He stated that the most important controls are the representation of institutions by up to 75% of the ownership structure, which will lead to the solidity and credibility of the entity and its taking an institutional form, stressing that the market needs the futures exchange because the diversity of products attracts a new segment of customers.

Fathallah added that the intervention of the legislator to amend the laws is an urgent necessity to match the aspirations of investors.
Rania Yaqoub, Chairman of the Board of Directors of Three Way Securities, said that the Futures Exchange is one of the most important mechanisms that are supposed to exist in the capital market, and the Egyptian Stock Exchange and the Financial Supervision Authority have expanded the existence of this entity.

She indicated that it will help control the markets and the regulatory authorities and preserve the consumer because of the existence of announced prices in accordance with the mechanisms of supply and demand, as they will start with the main commodities according to what the Ministry of Supply announced.

Yaqoub pointed out that the futures contract is one of the most important mechanisms that will attract new investors in light of the restructuring and development that the state seeks.

She explained that the controls taken by the Authority regarding the ownership structure of the Futures Exchange Company were taken based on the international standards of these exchanges, noting that the Egyptian Stock Exchange will have a percentage of ownership in addition to banks, insurance companies and individuals of financial solvency.

The article welcoming the requirements for the structure of ownership of the Contracts Exchange was written in the Stock Exchange newspaper.