In a new lecture, Egypt Financial Regulatory Authority Chair Islam Azzam explains the recently issued framework for short selling of borrowed securities ahead of the mechanism’s first rollout in its revamped form on the Egyptian Exchange. The lecture follows the authority’s work to establish a centralized securities lending system and prepare market participants for implementation. Azzam details the responsibilities of lenders, borrowers, custodians, Misr for Central Clearing, Depository and Registry, and the Egyptian Exchange, as well as how the new centralized lending system will operate. He also addresses the treatment and distribution of financial returns, distinguishes short selling from margin buying, and explains how using both mechanisms could improve pricing efficiency and market activity.
2026-09-07Egypt Financial Regulatory Authority
Egypt Financial Regulatory Authority explains new short selling framework ahead of Egyptian Exchange rollout
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.