Egypt’s Financial Regulatory Authority reviews short selling rollout and client protection measures at media workshop

Egypt’s Financial Regulatory Authority (FRA) reviewed preparations for short selling and safeguards for nonbank financial services at a workshop for economic journalists. Chair Islam Azzam reiterated that short selling is expected to launch on the Egyptian Exchange within a few weeks, restating the timetable outlined in October when live testing of the central securities lending system was under way. The revised framework centers on a system developed and managed by Misr for Clearing that makes lending offers visible to lenders and borrowers. Azzam explained participants’ obligations, including brokers’ responsibilities and procedures for closing open positions. For nonbank financing companies, preparations remain under way to apply Basel III standards from January 2027. Existing financing safeguards include assessing customers’ creditworthiness, verifying their identity and connecting companies with the credit bureau in real time. Companies’ databases are also being linked with the FRA. Permitted financing guarantees include promissory notes, asset collateral and sureties, while trust receipts, documents signed in blank and deposit contracts or equivalent instruments are prohibited. The workshop also provided figures on market supervision and the testing of financial technology products. Trading supervisors have examined 55 cases of suspected manipulation during 2026, while the department supervising capital market entities has completed 244 inspection and verification assignments. Work continues on regulating market making to support liquidity. Separately, the FRA’s regulatory sandbox has received 67 applications, with nine projects granted preliminary approval and two progressing to actual testing under regulatory requirements before wider deployment.