Regulation S is a series of rules that clarifies the position of the SEC that securities offered and sold outside of the United States do not need to be registered with the SEC. This classification is in recognition for the high international standards level attained by CASE up to now. Accordingly, Qualified American Institutional Investors may buy and sell securities in CASE without the restrictions imposed on them for trading in markets not designated as off shore securities markets. This implies an added advantage for CASE, as it will increase its liquidity and trade volume, for the direct benefit of investors, resulting from the expected larger volume of trade to take place in this market. The participation of institutional investors in CASE also promotes favorable conditions for the trading of new securities and translates into yet another benefit for investors, as more alternatives will be available for their investment.
Dr. El Torgoman, stated that "The success of our application to the SEC is important for our future business development and in enhancing the position of Cairo as an international financial center". The SEC applies rigorous criteria in making its decision. Their assessment includes reference to the Exchange's rules, its organization and structure, regulatory framework, reporting of securities transactions and systems for the dissemination of price quotations and market data. He added that this recognition is a significant milestone and one which confirms CASE international standing.
