On 9 March 2026, EGY FRA issued a press release concerning resolution 365 of 2026.
The Financial Supervisory Authority (EFSA) has issued a regulatory decision to practice securities borrowing operations for the purpose of selling (Short Siling), to enhance the efficiency of the market and raise levels of liquidity and depth, in order to support the stability of transactions and preserve the rights of customers.
First: a centralized lending system
The decision clarified that the central lending system is transparent and instantaneous control and is carried out exclusively through the implementer, which is the Central Depository and Registration Company (Egypt Clearing).
The decision, issued by the presidency of the Authority before the assignment of Dr. Mohamed Farid before the Minister of Investment and Foreign Trade, set the priority criteria, as lending requests are implemented based on the lowest lending rate offered, then the longer period, and finally the precedence of the introduction of applications to the system.
The decision required the provision of a cash cover before implementation amounting to 150% of the value of the open position; 100% of the value of the borrowed shares in addition to 50% as a cash guarantee margin, with alternatives to additional guarantees in accordance with the regulated controls.
