Aggregated News From Investment Management Regulators

Egypt’s Prime Minister issues a package of Decrees to reduce the Exchange trading fees in order to enhance its competitiveness among other markets – Thursday 7/5/2020

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Dr. Omran: Total reduction is over 40% of transactions cost to reach up to 30 per 100,000 compared to more than 50 per 100,000

Dr. Mohammed Omran – FRA’s Chairman welcomed Prime Minister’s Decrees that were issued upon the proposal of FRA’s BOD aiming at developing the Capital Market and making it more attractive for investments through reducing transaction cost. In this respect, the Egyptian Capital Market will become a more competitive market among the regional and international Capital Markets.

FRA’s Chairman said that FRA shall -promptly- issue an executive decision to reduce services’ fees received by the Authority and put it into force in parallel with publishing the new Decrees in the Egyptian Gazette. Such decisions shall encourage investment and create a competitive investment environment among international and regional Capital Markets. Thus, the Egyptian market shall receive the lowest services fees among the other market regulators in the whole region.

Dr. Omran explained that Prime Minister Decrees no. (1013), (1014), (1015) of 2020 reduced Exchange trading fees collected from market institutions. According to Prime Minister’s Decree no. 1013 of 2020, the Exchange’s services fees for each operation carried out on listed securities shall be reduced to be ten per 100,000 instead of 12 per 100,000

According to Dr. Omran, Prime Minister’s Decree no. 1014 of 2020 defined the services’ fees received by the MCDR to be ten per 100,000 instead of 12.5 per 100,000.  Also, in order to increase the volume of dealings in the Egyptian market, Prime Minister’s Decrees granted the same reduction for specialized activities, as ten per 100,000 shall be paid from the value of each operation held by intraday trading mechanism (T+0) or T+1 settlement mechanism.

Dr. Omran added that Prime Minister’s Decree no. 1015 of 2020 on the reorganization of Investor Protection Fund stated that the services’ fees received by the Fund shall be reduced by 50% to be 5 per 100,000 instead of 10 per 100,000.

Dr. Omran noted that the Prime Minister had already issued decree no. 2339 of 2019 dated 1 October 2019 on approving FRA’s BOD proposal to amend the statute of Investor Protection Fund and reduce the fees collected by Investor Protection Fund from investor dealing in the Exchange to be ten per 100,000 instead of 20 per 100,000.

FRA’s Chairman confirmed that Prime Minister’s Decrees reduced transaction costs of bonds, sukuk and other debt instruments listed on the Stock Exchange by 50% , adding that such steps shall increase trading in debt instruments.

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Regulator Information

Abbreviation: FRA
Jurisdiction: Egypt

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