As part of the efforts to increase liquidity on the Egyptian Stock Market, Dr. Mohammed Omran, FRA’s Chairman decided to grant short selling license to the following companies:
– EFG Hermes Securities Brokerage
– Financial Brokerage Group (FBG)
– Commercial International Brokerage company (CIBC)
– Arab African International Securities (AAIS)
That is in accordance with the provisions of FRA’s BOD decision no. 268 of 2019 issued in February to regulate short selling mechanism.
Short selling is a transaction in which the seller does not actually own the stock that is being sold but borrows it from the broker-dealer through which he or she is placing the sell order. The seller then has the obligation to buy back the stock at some point in the future, thereby making profits from the difference in selling prices and purchasing prices. It is worth noting that the Authority has already granted the first short selling license last week.