Egypt Financial Regulatory Authority briefs journalists on derivatives and market liquidity mechanisms in a two-day workshop

The Egypt Financial Regulatory Authority held interactive sessions and workshops for journalists, as part of a two-day training programme, to deepen understanding of non-banking financial services under its supervision and to explain how derivatives and market liquidity tools can support a more stable and competitive capital market. The first session focused on financial derivatives, distinguishing between forwards, futures, options and swaps, and outlining their uses in hedging and risk management, as well as features such as leverage and lower trading costs versus other investment approaches. Further sessions covered the roles of market makers, liquidity providers and authorised participants, including the authorised participant’s function in issuing and redeeming exchange-traded fund units to keep prices aligned with net asset value. Securities borrowing for short selling was also discussed, including use of the central securities lending system at Misr for Clearing, how brokerage firms and custodians facilitate lending arrangements, and the limitation of the mechanism to securities specified by the exchange and approved by the Authority. The Authority indicated it will continue organising training programmes and events to raise the capabilities of market participants and media and to support transparency and efficiency in non-banking financial activities.