Ahmed El Sheikh, Chairman of the Egyptian Stock Exchange, issued Decision No. 795 of 2024, issuing rules for trading carbon emission reduction certificates and their futures contracts on the Egyptian Stock Exchange. The Board of Directors of the Egyptian Stock Exchange approved the rules for trading these certificates. The Board of Directors of “Taswiyat for Clearing Services” also set the rules for conducting settlements in coordination with the Egyptian Stock Exchange. Coordination and communication with the Financial Regulatory Authority was made to approve the trading rules and the settlement rules and start working on them.
The Chairman of the Egyptian Stock Exchange praised the constructive role played by the Financial Regulatory Authority in setting the legislative framework for dealing with carbon emission reduction certificates and futures contracts, as it issued the rules for registration and delisting, as well as the standards for approving local voluntary carbon registries, and also the standards for registering verification and certification bodies for carbon emission reduction projects.
“The Egyptian Stock Exchange completed developing the trading system for carbon emission reduction certificates in December 2023, when the stock exchange announced the systems’ readiness to trade these certificates. This was done through the Egypt for Information Dissemination (EGID) company, the technological arm of the Egyptian Stock Exchange. The settlement system for transactions on them was also developed through the Clearing Services Settlement Company, owned by the Egyptian Stock Exchange,” Al-Sheikh said.
He added: “I am proud of the success of the cadres of EGID and Settlements in developing the trading and settlement systems.”
He explained that “in the context of preparing an integrated system for trading carbon certificates, the Egyptian Stock Exchange administration has restructured the market’s website and published all operating rules in Arabic and English and displayed them side by side to facilitate matters for all market parties.”