Are we one step closer to seeing short term bonds?

LEGISLATION WATCH- Are we one step closer to seeing short term bonds? The Financial Regulatory Authority (FRA) appears to have begun fleshing out legislation that would open the door to issuing short-term bonds, Al Mal reports. Representatives from organizations including EBRD, investment banks and credit ratings agencies attended an FRA workshop on the topic yesterday. While it unclear what form the legislation will take, sources said last month that the FRA’s board of directors has already approved proposed amendments to the Capital Markets Act’s executive regulations. Short term bonds appear to be the only major financial instrument which didn’t make it in the act. The amendments introduced mechanisms to govern short selling, alongside a host of other financial instruments such as sukuk, and commodities and futures exchanges.