The Egypt Financial Regulatory Authority (FRA) announced the activation of updated operating rules for the Settlement Guarantee Fund that allow fund members to request settlement of securities trades with settlement cycles shorter than the standard T+2 up to six times their subscription amount. The operational rollout began from the trading session on 23 March 2025, with Misr for Central Clearing and the Settlement Guarantee Fund putting the required programmes in place. The changes implement FRA Board Decision No. 68 of 2024, which also permits members to increase their paid-in capital subscriptions to expand the amount available for these faster settlements. The FRA may adjust the six-times limit upward or downward based on market risk or risks specific to a given fund member. The FRA also approved the executive rules and procedures prepared by Misr for Central Clearing, including applying a “waterfall” concept that increased the fund’s resources by 650% relative to member subscriptions.
Egypt Financial Regulatory Authority 2025-03-23
Egypt Financial Regulatory Authority activates Settlement Guarantee Fund framework allowing T+1 settlements up to six times member subscriptions
The Egypt Financial Regulatory Authority activated updated rules for the Settlement Guarantee Fund, allowing members to settle securities trades with cycles shorter than T+2 up to six times their subscription amount. Effective from 23 March 2025, these changes follow FRA Board Decision No. 68 of 2024 and include provisions for adjusting the six-times limit based on market risk. Misr for Central Clearing implemented executive rules, increasing fund resources by 650% through a "waterfall" concept.