The Financial Regulatory Authority (FRA) has approved a proposal from the Egyptian Exchange (EGX) to expand the use of the reverse execution mechanism, along with other mechanisms, to correct trading violations, according to an emailed press release on Sunday.
The mechanism will also help in neutralizing the impact on the closing prices, the statement added.
This move comes within the framework of the keenness of both the FRA and the EGX on maintaining the stability of markets and the security of transactions by applying mechanisms that prevent disruptions in the market.
The reverse execution mechanism focuses on correcting transactions that have violated trading regulations, the statement noted.
As per these amendments, the FRA and the EGX aim to promptly correct and remove the impacts on the violations before taking legal action.
Source: Arab Finance
