Chapter (14)
The company clears securities transactions for the account of Participants to determine the net rights and liabilities of every such Participant. The company also performs the settlement of obligations for every securities transaction.
The Executive Regulations specify the operations and relevant procedures pertaining to the clearing and settlement processes.
Chapter (15)
The company clears and settles securities transactions on the basis of delivery versus payment. The period between the time a transaction takes place and the time settlement is effected does not exceed the period specified by a decree issued by the board of directors of the Capital Market Authority.
Chapter (16)
Subject to the approval of the Capital Market Authority, the board of directors of the company issues a decree setting forth the means by which Participants can guarantee the fulfillment of their settlement obligations related to securities transactions, which may consist of:
- A guarantee of the Participant posted by a third party;
- A limit on the amount of a Participant’s cash settlement obligations to the company for its transactions;
- Any manner in which unsettled transactions may be liquidated, as set forth in rules and procedures of the company;
A securities lending and borrowing service for Participants.
Chapter (17)
The company holds deposited securities on its own premises or at one of the entities licensed to act as a custodian, and holds Participant funds at any bank supervised by the Central Bank of Egypt.
Chapter (18)
The company establishes and manages a fund to which Participants are required to contribute to guarantee the settlement of obligations resulting from securities transactions. The rules regulating the activities of the fund and its participation are specified in a decree from the board of directors of the Capital Market Authority.
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