Egypt’s Financial Regulatory Authority Chair Islam Azzam reviewed preparations to launch short selling, followed by a market maker mechanism, during a meeting with the European Bank for Reconstruction and Development. Short selling is nearing launch, while the subsequent market maker mechanism is intended to improve liquidity and pricing by addressing supply and demand imbalances. The update follows broker training and testing of the central securities lending system under the recently issued short selling framework. Recently regulated hedge funds will be able to invest in derivatives, short selling and other actively traded instruments. The first digital platform licensed by the authority for investment in real estate funds is also nearing launch, allowing individuals to gain indirect exposure to property through fund units.
The discussion also covered government share offerings, including the start of trading in Banque du Caire shares and the forthcoming Misr Life Insurance offering. The authority’s role includes reviewing prospectus disclosures and fair value assessments, completing regulatory requirements and coordinating listing, trading and settlement procedures. In insurance, more than 90 regulatory decisions have been issued since the Unified Insurance Law of 2024. Recent measures simplify product approvals and procedures, while changes to credit and guarantee insurance underwriting and pricing seek to improve risk assessment through more accurate and comprehensive data. Updated connections between insurers and the authority are intended to improve supervisory monitoring and data quality.