• QAT Exc announced launch of covered short selling and securities lending/borrowing.
• Follows QAT FMA September 2022, short selling and securities lending rules.

Summary

• Developed in cooperation with QAT FMA/Edaa (Qatar Depository Company), covered short selling will be subject to QAT FMA covered short selling rules in resolution 5 of 2022 and securities lending and borrowing rules under resolution 4 of 2022.
• Also subject to QAT Exc covered short selling rules in market notices 26, 27 of 2023, plus Edaa rules and procedures issued by Edaa on securities lending and borrowing.
• Covered short selling will be allowed solely for market makers, liquidity providers, and qualified investors including members and any other cases approved by QAT FMA.
• Securities lending/borrowing will be executed in Edaa post-trading system by members /custodians licensed by QAT FMA in designation securities lending & borrowing agents.
• Agent roles/responsibilities are defined in art (3), securities lending & borrowing rules.
• QAT Exc said such initiatives are essential for derivatives market launch and adopting tradable investment instruments, and upgrading Qatari market to advanced status.
• Covered short selling rules stipulate transactions can only be executed at price higher than the last traded price for the same security; the uptick rule applies to all traders.
• Brokers must ensure covered short selling order prices are at least 1 point higher.

Next Steps

• QAT Exc will announce seminars, and training courses in Arabic and English shortly.