Egyptian Exchange to implement short selling within weeks

The Egyptian Exchange (EGX) and the Financial Regulatory Authority (FRA) are preparing to implement short selling mechanisms within weeks. This follows the completion of regulatory frameworks and technical preparations by brokerage firms and relevant authorities.

Omar Radwan, Chairman of the Egyptian Exchange, stated that brokerage firms are currently upgrading their systems and conducting necessary pilot tests. The implementation aims to enhance market depth and liquidity. Additionally, the EGX is awaiting a final review from FTSE Russell in September regarding its small and medium-sized enterprise category, following the upgrades of Telecom Egypt and Talaat Moustafa Group Holding.

Dr. Islam Azzam, Chairman of the FRA, held meetings with leaders from the EGX and Misr Clearance to review the operational infrastructure. A central lending system is being developed to ensure seamless connectivity between Misr Clearance, the exchange, brokerage firms, and custodians. This system will allow short sellers to view available lending offers and ensure transparency and governance in accordance with international best practices.