Egypt’s FRA holds consultation meetings ahead of short selling launch
13 November 2026 Egypt
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Egypt’s Financial Regulatory Authority (FRA) has held consultation meetings with market participants ahead of the launch of its short selling mechanism.
Chaired by FRA chairman Islam Azzam, the sessions brought together representatives from the Egyptian Exchange (EGX), Misr for Central Clearing, Depository and Registry (MCDR), securities brokerage firms, and custodians to finalise executive procedures under FRA Board Decision No. 155 of 2026.
The meetings included system testing to verify real-time integration between MCDR and brokerage firms on the centralised lending system, documenting operational stages while allowing borrowing clients to view and select available lending offers and lenders to view all registered offers on the platform.
Technical teams also assessed the technological readiness of brokerage firms, operational infrastructure updates, connectivity protocols with the centralised lending system, and real-time client-tracking capabilities.
Discussions further addressed steps to establish a comprehensive executive procedures manual to formalise the legal and regulatory obligations of brokerage firms and MCDR.
Additionally, the FRA and EGX are reviewing the eligibility criteria and conditions for stocks available for lending, which will be announced upon the official launch of the mechanism.
Azzam states the consultation sessions aim to support the rollout of short selling to increase market liquidity, improve pricing efficiency, and deepen the capital market.
He adds that testing on the centralised lending system is progressing as planned, noting that the new regulatory framework balances lending and borrowing flexibility with risk controls and market stability.
Ahead of the launch, the FRA’s Financial Services Institute held a training programme for brokerage firms, financial institutions, and custodians covering operational rules, lending limits, collateral management, corporate actions, position closures, and the standardised model contract issued under FRA Chairman Decision No. 3350 of 2026.
Chaired by FRA chairman Islam Azzam, the sessions brought together representatives from the Egyptian Exchange (EGX), Misr for Central Clearing, Depository and Registry (MCDR), securities brokerage firms, and custodians to finalise executive procedures under FRA Board Decision No. 155 of 2026.
The meetings included system testing to verify real-time integration between MCDR and brokerage firms on the centralised lending system, documenting operational stages while allowing borrowing clients to view and select available lending offers and lenders to view all registered offers on the platform.
Technical teams also assessed the technological readiness of brokerage firms, operational infrastructure updates, connectivity protocols with the centralised lending system, and real-time client-tracking capabilities.
Discussions further addressed steps to establish a comprehensive executive procedures manual to formalise the legal and regulatory obligations of brokerage firms and MCDR.
Additionally, the FRA and EGX are reviewing the eligibility criteria and conditions for stocks available for lending, which will be announced upon the official launch of the mechanism.
Azzam states the consultation sessions aim to support the rollout of short selling to increase market liquidity, improve pricing efficiency, and deepen the capital market.
He adds that testing on the centralised lending system is progressing as planned, noting that the new regulatory framework balances lending and borrowing flexibility with risk controls and market stability.
Ahead of the launch, the FRA’s Financial Services Institute held a training programme for brokerage firms, financial institutions, and custodians covering operational rules, lending limits, collateral management, corporate actions, position closures, and the standardised model contract issued under FRA Chairman Decision No. 3350 of 2026.
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