{"id":558939,"date":"2021-01-03T03:45:17","date_gmt":"2021-01-03T03:45:17","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/01\/03\/egx-to-help-brokerages-offer-short-selling\/"},"modified":"2021-01-03T03:45:17","modified_gmt":"2021-01-03T03:45:17","slug":"egx-to-help-brokerages-offer-short-selling","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/01\/03\/egx-to-help-brokerages-offer-short-selling\/","title":{"rendered":"EGX to help brokerages offer short selling"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-06\"><\/a> <strong>The EGX could move to slash the cost of the electronic system needed to short <\/strong><strong>sell on the bourse if brokerages request a lower price tag<\/strong>, EGX Chairman Mohamed Farid said at a virtual presser on Thursday, according to <a href=\"https:\/\/bit.ly\/3b1ntgz\">Al Mal<\/a>. The EGX has not, however, received any complaints from brokerages about the cost of the system, Farid said at the presser, in which he recapped the bourse\u2019s <a href=\"https:\/\/ent.news\/2021\/1\/%D8%AD%D8%B5%D8%A7%D8%AF-2020.pdf\">year-end report (pdf)<\/a>. Reports in the local press <a href=\"https:\/\/enterprise.press\/stories\/2019\/11\/20\/brokerages-arent-happy-with-how-much-egypts-short-selling-electronic-system-is-going-to-cost-them-6746\/\">in 2019<\/a> had suggested that brokerage firms voiced concerns to the Financial Regulatory Authority that they would be unable to fork out the USD 9,500 (EGP 153k) required for the system. The reports had indicated that EGX officials were working with their software developers at the time to reduce the price.<\/p>\n<p><strong>Background:<\/strong> Short selling was launched on the EGX <a href=\"https:\/\/enterprise.press\/stories\/2019\/12\/02\/short-selling-comes-to-the-egyptian-stock-market-7495\/\">at the end of 2019<\/a> but has had a lackluster year since. In the first four months of 2020, the bourse only saw \u201ca handful\u201d of short selling transactions worth EGP 100k, which Misr for Central Clearing, Depository, and Registry Managing Director Tarek Abdel Bari <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/bcfc1271-2557-4c95-903f-516fb4c1131a\">said at the time<\/a> is anemic. Abdel Bari had suggested the pandemic-induced equity sell-off at the beginning of last year was a golden chance for investors to book gains, but few took advantage. Some analysts had <a href=\"https:\/\/enterprise.press\/stories\/2019\/12\/16\/egx-struggles-on-low-trading-volumes-lack-of-new-listings-8495\/\">previously speculated<\/a> that brokerages simply don\u2019t understand how the short selling system operates.<\/p>\n<p><strong>ON THE IPO PIPELINE:<\/strong> Covid-19 killed or postponed 4-5 IPOs that were expected to hit the EGX in 2020, <a href=\"https:\/\/bit.ly\/3565RfI\">Farid said<\/a>, without naming the listings. By <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/6e84a876-0331-4956-b7f3-badee6542278\">our count<\/a>, Banque du Caire\u2019s hotly anticipated IPO was postponed and the state\u2019s stake sale program was <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/82f7037f-4711-42cd-a7d1-7f4f6ab1f06e\">kicked back<\/a> again, while the pandemic may have permanently shelved the IPOs of <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/f767246d-c9cd-45bf-bb2b-fc0ee5c26dcd\">Nile Air<\/a> as well as <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/70d5ed14-509a-4f44-a084-c72a5e41346a\">Qalaa Holding\u2019s<\/a><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/70d5ed14-509a-4f44-a084-c72a5e41346a\">TAQA Arabia<\/a><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/70d5ed14-509a-4f44-a084-c72a5e41346a\">and Arab Refining Company<\/a>. Separately, Farid <a href=\"https:\/\/bit.ly\/3ocDGTK\">reiterated<\/a> that any military-affiliated companies that list on the EGX \u2014 including Wataniya Petroleum and bottled water brand Safi \u2014 will abide by all listing and disclosure rules.<\/p>\n<p><strong>AND IPO DREAMS:<\/strong> The bourse is in talks with 88 companies about listing on the exchange, Farid <a href=\"https:\/\/bit.ly\/357hyCS\">said<\/a>. <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/6e84a876-0331-4956-b7f3-badee6542278\">Our super-secret IPO tracker counts 85 companies<\/a> that have indicated in recent years an interest in IPOing, with 15 of them carrying an Enterprise Realness Rating of three or more on a scale of five.<\/p>\n<p><strong>ALSO FROM THE BOURSE:<\/strong> The EGX wrapped the third round of its training program to increase financial literacy among young people and equip them with the knowledge and skills to be executives, according to an <a href=\"https:\/\/ent.news\/2021\/1\/EGX-National-Training-Academy.pdf\">emailed statement (pdf)<\/a>. The training is part of an agreement the EGX signed in 2019 with the National Training Academy.<\/p>\n<p><strong>EGX LEAGUE TABLE FOR 2020- <\/strong>EFG Hermes once again sits at the top, holding a market share of 20%, according to <a href=\"https:\/\/bit.ly\/3b12pXf\">Al Mal<\/a>. CI Capital came in second with 7.7%, followed by Beltone with 5.9%, Pioneers with 5.6%, and Pharos with 5.4%.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The EGX could move to slash the cost of the electronic system needed to short sell on the bourse if brokerages request a lower price tag, EGX Chairman Mohamed Farid said at a virtual presser on Thursday, according to Al Mal. The EGX has not, however, received any complaints from brokerages about the cost of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":558940,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7303],"tags":[102,68,72,78,2221,831],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-558939","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-capital-markets","tag-capital-markets","tag-egx","tag-enterpriseam","tag-ipo-watch","tag-mohamed-farid","tag-short-selling","wpautop","entry"],"acf":{"mongo_id":"4fe54665-59f6-45b7-99a1-78676bff5c17","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/1\/20.jpg","photo_position":"above","related_issue":[558925],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>EGX to help brokerages offer short selling - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/01\/03\/egx-to-help-brokerages-offer-short-selling\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"EGX to help brokerages offer short selling\" \/>\n<meta property=\"og:description\" content=\"The EGX could move to slash the cost of the electronic system needed to short sell on the bourse if brokerages request a lower price tag, EGX Chairman Mohamed Farid said at a virtual presser on Thursday, according to Al Mal. The EGX has not, however, received any complaints from brokerages about the cost of [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2021\/01\/03\/egx-to-help-brokerages-offer-short-selling\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2021-01-03T03:45:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2021\/1\/20.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/01\/03\/egx-to-help-brokerages-offer-short-selling\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/01\/03\/egx-to-help-brokerages-offer-short-selling\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"EGX to help brokerages offer short selling\",\"datePublished\":\"2021-01-03T03:45:17+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/01\/03\/egx-to-help-brokerages-offer-short-selling\/\"},\"wordCount\":474,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/01\/03\/egx-to-help-brokerages-offer-short-selling\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2021\/1\/20.jpg?fit=%2C&ssl=1\",\"keywords\":[\"capital markets\",\"EGX\",\"EnterpriseAM\",\"IPO watch\",\"Mohamed Farid\",\"short selling\"],\"articleSection\":[\"Capital markets\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/01\/03\/egx-to-help-brokerages-offer-short-selling\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2021\/01\/03\/egx-to-help-brokerages-offer-short-selling\/\",\"name\":\"EGX to help brokerages offer short selling - 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2019","format":false,"excerpt":"REGULATION WATCH- Brokerages aren\u2019t happy with how much the short selling electronic system is going to cost them: Brokerage firms have voiced concerns to the Financial Regulatory Authority (FRA) that they will be unable to afford the cost of the electronic system needed to short sell on the EGX, sources\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/12\/198.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":572705,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/07\/06\/egx-looking-to-change-how-closing-share-prices-are-calculated-says-farid\/","url_meta":{"origin":558939,"position":1},"title":"EGX looking to change how closing share prices are calculated, says Farid","author":"enterpriseam admin","date":"6 July 2020","format":false,"excerpt":"REGULATION WATCH- EGX looking to change how closing share prices are calculated, says Farid: The EGX plans to implement \u201csoon\u201d a mechanism proposed by the Financial Regulatory Authority\u2019s stock exchange advisory committee that would see the EGX conduct auctions to determine the closing price of shares, EGX boss Mohamed Farid\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":632344,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/02\/08\/egx-plans-to-involve-banks-in-margin-trading-welcomed-by-brokerages\/","url_meta":{"origin":558939,"position":2},"title":"EGX plans to involve banks in margin trading welcomed by brokerages","author":"enterpriseam admin","date":"8 February 2018","format":false,"excerpt":"Brokerages cheer EGX drive to interest banks in financing margin trading: Brokerages and industry associations are welcoming recent steps by the EGX to increase the involvement of banks in margin trading, according to Al Mal. EGX head Mohamed Farid had met last week with the Federation of Egyptian Banks to\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":595034,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/09\/15\/shorts-are-expected-to-come-to-egypts-stock-exchange-in-november\/","url_meta":{"origin":558939,"position":3},"title":"Shorts are expected to come to Egypt\u2019s stock exchange in November","author":"enterpriseam admin","date":"15 September 2019","format":false,"excerpt":"Shorts are expected to begin in November: The Financial Regulatory Authority (FRA) is expected to give the green light to begin short-selling on the EGX in November, FRA deputy head Khaled El Nashar said on Thursday following a meeting with FRA\u2019s consultation council, and the heads of the EGX and\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":573596,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/08\/11\/the-egx-is-allowing-investors-to-short-smaller-companies\/","url_meta":{"origin":558939,"position":4},"title":"The EGX is allowing investors to short smaller companies","author":"enterpriseam admin","date":"11 August 2020","format":false,"excerpt":"The EGX is allowing investors to short smaller companies: The EGX yesterday approved plans to allow investors to short smaller companies in a bid to encourage short selling activity which has failed to take off on the exchange since it was launched in December, it announced in a statement (pdf).\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/8\/78.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":549363,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/09\/14\/listing-on-the-egx-just-got-a-little-easier-a-boost-to-margin-trading\/","url_meta":{"origin":558939,"position":5},"title":"Listing on the EGX just got a little easier + a boost to margin trading","author":"enterpriseam admin","date":"14 September 2022","format":false,"excerpt":"SMART POLICY- FRA tweaks listing procedures + scraps margin trading caps: The Financial Regulatory Authority (FRA) has handed down a slate of changes designed to boost liquidity on the EGX. At a presser yesterday, the FRA made its first major policy statement of the Mohamed Farid era, announcing new measures\u2026","rel":"","context":"In &quot;Capital markets&quot;","block_context":{"text":"Capital markets","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/capital-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/9\/214.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/558939","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=558939"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/558939\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/558925"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/558940"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=558939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=558939"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=558939"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=558939"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=558939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}