The Egypt Financial Regulatory Authority expects to launch regulated short selling within the next few weeks once the centralized lending system and broker connections are completed. It is also prioritizing market making, with a stamp duty exemption and possible further incentives, while advancing Basel III and Solvency II related prudential reforms.
The Egypt Financial Regulatory Authority has told the European Bank for Reconstruction and Development that regulated short selling is expected to launch officially within the next few weeks. Following completion of the new framework, final work is underway on the centralized securities lending system and full technical connection between Misr for Central Clearing, Depository and Registry and brokerage firms.
Market making is another near-term priority intended to support liquidity and trading stability. Market makers will be exempt from stamp duty, while the authority is considering additional incentives to encourage institutional investment alongside planned listings and offerings of major state-owned companies.
The discussions also covered recent measures to align risk management in insurance and nonbank financing with international standards, including Basel III, and cooperation on introducing Solvency II in Egypt’s insurance sector. The parties also considered further development of the Egyptian Exchange following the launch of the derivatives market in March, including EBRD ideas on converting the exchange into a joint stock company.
Egypt Financial Regulatory Authority Chair Islam Azzam said Basel III standards will apply to the nonbank finance sector from January 2027, covering credit, market and operational risks. The authority is also studying a central anti-fraud system, AI-enabled supervision and full electronic links with supervised companies. It may review responsible…
The Egypt Financial Regulatory Authority expects regulated short selling to launch within weeks after completing the central lending system, broker links and market training. The mechanism is part of a wider expansion of derivatives, hedge funds and market making as second-quarter trading exceeded EGP 6.4 trillion, up 78.3% year over year.
Egypt Financial Regulatory Authority Chair Islam Azzam has explained the new short selling framework ahead of its rollout on the Egyptian Exchange. The lecture covers the centralized securities lending system, participants’ obligations, financial returns and the differences between short selling and margin buying.