CSE To Assist In The Development Of Egypt's Capital Market

by Lorys Charalambous, Tax-News.com, Cyprus

30 March 2006

The Cyprus Stock Exchange is part of a consortium which has won a European Commission bid to develop the Egyptian Capital Markets Authority.

The consortium is being led by the Thessaloniki Stock Exchange and involves companies from Egypt, Greece and the United Kingdom, including the Athens Stock Exchange, Nestor Advisors (UK) and MDCS (Egypt).

The objective of the project is to provide technical assistance to the Egyptian Capital Market Commission, with emphasis on corporate governance. The duration of the contract is 3 years, and the project's budget exceeds EUR2.6 million.

Egyptian financial institutions, including the Public Securities Authority, the Egyptian Clearing, Deposit and Central Registry Company, and the Cairo and Alexandria bourses have signed memoranda of understanding with institutions in the United Arab Emirates, including the Securities and Commodities Authority and the Abu Dhabi Securities Market.

One of the MoUs calls for enhanced cooperation, exchange of information and protection of investors in securities, while the other provides a framework to allow double listings to take place in the respective markets and covers matters related to the reconciliation, deposit, distribution of profits, settlement of disputes, and fees received by each of the two markets.

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