El-Sharkawy: T+0 Applicable End of October, GDRs Regulations Completed Before 2013
Dr. Ashraf El-Sharkawy- the Chairman of the Egyptian Financial Supervisory Authority (EFSA) – announced Wednesday that the Authority plans to complete by the end of 2012 its draft of the regulations organizing the Global Depository Receipts (GDRs).
El Sharkawy further added that the EFSA is studying the draft mechanisms so that the GDRs would be properly issued.
The GDRs draft comes in the sidelines of the EFSA’s concern for the firms and investors’ interests and for achieving the highest levels of transparency, he noted.
On the same-day trading mechanism T+0, El-Sharkawy asserted that the EFSA will be activating the system by the end of October after making further successive tests by Misr for Central Clearing, Depository & Registry (MCDR) alongside by authorities working in the capital market.
Under the T+0 mechanism, traders will be allowed to sell any portion of their available stocks and then buy them again at the same session.
Settlement will also be undertaken on the same day.
Moreover, the new regulations organizing the GDRs include the rules of issuing licenses for the brokerage firms which are allowed to deal in the GDRs. Such firms shall have capital worth not less than EGP 20 million as the GDRs deals engage margin and intra-day trading.
