The Egypt Financial Regulatory Authority issued a decision setting licensing requirements for firms seeking to conduct futures contracts brokerage, covering minimum financial resources, governance, technical readiness, risk management and client-protection controls. The decision requires applicants to have issued and fully paid-up cash capital of at least EGP 50 million (or the equivalent in foreign currency) and to comply with ownership structure and shareholder ratio rules for non-banking financial activities. Firms must also post a cash security deposit equal to 0.5 per mille of issued and paid-up capital and pay an EGP 5,000 fee to have the licence application reviewed. Operationally, it mandates a secured technology set-up (including central servers, licensed operating systems, data-protection tools and an effective internal control system) plus a separate emergency back-up location, and requires a risk-management operating manual covering market, credit, concentration, operational and liquidity risks. Governance conditions include fitness and propriety criteria for board members, minimum experience thresholds for board and senior management, and staffing of at least 12 key functions (including risk, internal control, AML/CFT, internal audit, IT security and trading). Client protections include checks on clients’ ability to meet obligations before order execution, daily monitoring of positions against settlement prices, management of margin accounts, confidentiality rules, written client contracts based on the Authority’s template, a ban on promising no losses or capping losses, and record-retention requirements of at least five years in paper and 15 years electronically, with onsite inspection powers. Firms already licensed to conduct futures brokerage when the decision enters into force are given three months to regularise their position, with the possibility of an extension subject to the Authority’s acceptance of the justification. The framework also sets conditions for securities brokerage firms seeking to add futures brokerage, including meeting capital and equity requirements and having no existing administrative measures in place.
Egypt Financial Regulatory Authority 2026-02-17
Egypt Financial Regulatory Authority sets EGP 50 million minimum capital and operational standards for futures brokerage licences
The Egypt Financial Regulatory Authority has set licensing requirements for futures contracts brokerage, including financial resources, governance, technical readiness, risk management, and client-protection controls. Applicants need a minimum issued and fully paid-up cash capital of EGP 50 million, must follow ownership structure rules, and meet operational and governance criteria. Existing licensed firms have three months to comply, with possible extensions subject to approval.