CMA Index (Egypt) Essay ⋆ Business Essay Examples ⋆ EssayEmpire

The Capital Market Authority (CMA) is the regulatory body responsible for the Egyptian securities market. Like the Securities and Exchange Commission (SEC) in the United States, the CMA is principally concerned with the protection of investors and the health of primary and secondary securities markets. To this end, it is the licensing authority for new securities companies, reviews and approves prospectuses for new securities issues and memoranda for private placements, and ensures that Egyptian Accounting Standards—derived from international standards—are upheld.

Further, the CMA monitors the securities market for fraud and unfair trading practices, and conducts regular inspections of brokers and other middlemen. Surveillance is planned to be bolstered in the coming years, to build investor confidence and the health of the Egyptian securities market.

The Egyptian securities trade dates to the 19th century, a century bound by the invasion of Egypt by Napoleon at one end and the decades of Egypt’s existence as a British colony on the other. The Suez Crisis led to a decades-long experiment in Arab socialism, but after the Camp David Accords in 1978, Egypt’s relationship with the United States and the West steadily improved. Ten years after Camp David, the nation was readmitted to the Arab League, and shortly after implemented market reforms. The CMA had been established in 1979, to facilitate the reemergence of Egypt’s capital markets; in 1992, the markets began to become fully active again, and have steadily grown since. The electronic trading system was implemented as early as 1995, and since 1999, corporate bond issues have been rated by various agencies. Every year, the CMA has been steadily modifying its structures and regulations, building a stronger market.

Critical to the CMA now is the 2008–12 five-year plan, aimed at attracting foreign investors. The overall strategic mission remains the same—to protect investors and develop the market—while focusing on efficiency and accountability in its regulatory practices. The specific strategic objectives that have been set for the 2008–12 period are as follows:

The ongoing development of regulatory programs, including the development of necessary legislation and new regulations, and further development of market surveillance.
The organization and provision of medium and long-term financial instruments, beginning with an evaluation of the international debt market to inform the development of an Egyptian debt market. A unit at CMA will be established to license and monitor debt issues, and securitization opportunities will be further developed.
Encouraging and strengthening investors’ awareness of Egyptian investment opportunities. This includes the usual public relations, from thrice annual investor workshops to programs for the media.
The ongoing development of the CMA’s internal work systems to cope with market developments, reorganizing the CMA’s administration if necessary.
The ongoing development of the capital market infrastructure, coordinating with the Ministry of Investment. The CMA will also study derivatives and determine whether they should be introduced to the Egyptian market.

Bibliography:

Hassan Aly, Seyed Mehdian, and Mark J. Perry, “An Analysis of Day-of-the-Week Effects in the Egyptian Stock Market,” International Journal of Business (v.9/3, 2004);
Capital Market Authority, www.cma.gov. eg (cited March 2009);
Country Briefs Financial Times Survey, “Egypt 2000/Finance and Investment Stock Market: Struggling to Spread Its Wings,” specials.ft.com (cited March 2009).

This example CMA Index (Egypt) Essay is published for educational and informational purposes only. If you need a custom essay or research paper on this topic please use our writing services. EssayEmpire.com offers reliable custom essay writing services that can help you to receive high grades and impress your professors with the quality of each essay or research paper you hand in.