Egypt – FRA Discussed the Development of Capital Market RE: Short Selling

Egypt – FRA Discussed the Development of Capital Market RE: Short Selling

On 8 May 2026, EGY FRA discussed the development of the capital market with Bloomberg Global Delegation.

Summary

  • During the discussions, the regulator explained that the new trading system developed by EGX together with Nasdaq will be activated.
  • This will allow integrated trading of stocks, fixed income instruments, derivatives, and carbon certificates, which will raise the efficiency of order execution, speed of settlement, and risk management.
  • EGY FRA highlighted the steps taken following the launch of the financial derivatives market, including the launch of the futures market on the EGX30 index.
  • It added that the launch of options contracts within a year will contribute to the provision of hedging and risk management tools, which will attract new institutional investors.
  • It added that the market maker activity will be activated and this will increase daily liquidity rates which will support pricing efficiency.
  • In addition, it stated the final step in activating the mechanisms of selling borrowed securities (short selling) will be completed.
  • This will be done by linking brokerage companies with Misr Clearing Company.
  • Finally, the regulator said it is considering introducing a range of incentives to stimulate the trading of carbon certificates.