Aggregated News From Investment Management Regulators

In preparation of launching Futures Exchange, Financial Services Institute (FSI) holds its first training course on Derivatives

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• FRA’s Chairman witnessed the graduation of the first batch of competencies capable of dealing in Futures Exchanges

Dr. Mohammed Omran – FRA’s Chairman stressed the keenness of the regulator to listen to the viewpoints of those operating in non-banking  financial markets , adding that the amendments to the existing legislations are often in response to the experience of professions associated with practicing non-banking financial activities.  He pointed out that the specialized consultative committees formed in the Authority are studying all suggestions of those engaged in the markets.

In his meeting with trainees who have passed the first program on derivatives organized by Financial Services Institute, FRA’s Chairman said that the Authority is working hard to increase markets’ efficiency. He added that FRA is introducing new and advanced training programs and provided professional certificates in financial engineering in cooperation with scientific academic institutions to spread the idea of financial derivatives within the Egyptian economy.

The aim of introducing new non-banking financial instruments in the Egyptian market was to attract more investments and diversify the financial instruments traded in the Egyptian market. Accordingly, this will broaden the base of choosing the most appropriate financing instrument for each institution according to their financial policies. FRA’s Chairman added that such new instruments are the main engines of FRA’s successive regulatory decisions since the beginning of this year in order to activate Futures Exchange which is one of the most important amendments to the Capital Market Law promulgated by Law No. 17 of 2018.

Dr. Omran explained that the implementation of the roadmap set by the Authority to activate Futures Exchanges shall be held either through licensing the establishment of a new entity “Futures Exchange” or through granting license to the Egyptian Stock Exchange to engage in the activity without the need to establish a company.  He added that FRA’s roadmap included the procedures set for establishing and licensing Futures Exchange and the conditions to be met. He noted that  technical cadres shall be trained and develop their skills to start Futures Exchange’s  activity, that is  through training courses and workshops applied to the scientific aspects of derivatives and methods of pricing and trading, in addition to defining the legislative and regulatory framework for conducting this activity.

In a related context, Mr. Hisham Ramadan – Acting Director of Financial Services Institute – FRA’s training arm – expressed the remarkable interest of brokerage companies and Investment Departments of insurance companies to join the first training program on derivatives to identify methods of pricing and trading in futures. He added that the program identified the investment opportunities associated with them and how to use them as hedging tools and cover the future liabilities as part of the investment policy of the Egyptian insurance companies and as one of the new channels of investment that can be invested in the framework of activating Futures Exchanges.

Due to the great demand for the program, it was decided to organize the second version of the first training program on financial derivatives to be started in the second half of June and lasted for five continuous weeks with a total of 48 hours. Hussein Atta Ghoneim Professor at Cairo University will implement the program. It will introduce different types of contracts (futures contracts – options contracts – swap contracts).
 

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Regulator Information

Abbreviation: FRA
Jurisdiction: Egypt

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