The Egypt Financial Regulatory Authority has begun live testing of the central securities lending system with the Egyptian Exchange, Misr for Central Clearing, Depository and Registry and licensed brokerages ahead of the formal launch of regulated short selling. The tests move the mechanism from technical preparation toward implementation under the recently issued regulatory framework and assess whether brokers have the systems needed to connect and operate effectively from launch. The system provides real-time links between the central depository and brokerages, records each stage of a transaction and allows borrowers to view and select from available lending offers. Lenders can also view other registered offers, while transaction records cover available securities, quantities, lending periods, client data and position closures. The framework caps lending at 40% of a listed company’s free float and each client and related parties at 2%, with the central depository responsible for monitoring limits, conducting daily valuations and collateral settlements, retaining sale proceeds and protecting lenders if a broker fails to return securities.
Egypt Financial Regulatory Authority begins live testing of central securities lending system ahead of short selling launch
The Egypt Financial Regulatory Authority has begun live testing of the central securities lending system with market infrastructure providers and licensed brokerages ahead of the formal short selling launch. The system will connect brokers and the central depository in real time, display lending offers and document transactions, subject to a 40% free float lending cap and a 2% borrower limit.