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Wednesday, 19 June 2019

Egypt’s FRA grants short selling licenses to EFG, CIB, AAIB

EFG, CI and AAIS take out short-selling licenses: The brokerage arms of EFG Hermes, CI Capital and the Arab Arfrican International Securities are now licensed short sellers, according to a Financial Regulatory Authority statement. The move comes after Arqaam Securities became last week the first to take out a license.

Background: The Financial Regulatory Authority (FRA) issued regulations last February for short selling on the EGX, allowing brokerage firms to act as market makers by finding lenders and borrowers of stocks. Investors looking to open a short position will need to put down 50% of the value of the securities borrowed, and brokerages will be required to park 20% in fixed-income instruments while the position is open. The EGX published last month a list of stocks approved for short selling.

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