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.

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