{"id":560549,"date":"2021-03-03T04:04:32","date_gmt":"2021-03-03T04:04:32","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/03\/03\/non-bank-lenders-now-allowed-to-finance-margin-lending\/"},"modified":"2021-03-03T04:04:32","modified_gmt":"2021-03-03T04:04:32","slug":"non-bank-lenders-now-allowed-to-finance-margin-lending","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/03\/03\/non-bank-lenders-now-allowed-to-finance-margin-lending\/","title":{"rendered":"Non-bank lenders now allowed to finance margin lending"},"content":{"rendered":"

<\/a> Egyptian factoring companies are now able to finance margin lending by <\/strong>brokerage companies <\/strong>under new regulations (pdf)<\/a> released by the Financial Regulatory Authority (FRA) yesterday. The move is meant to give brokerages access to new sources of funding and stimulate trading on the EGX. Eligible brokers are required to get approval from the FRA before engaging in margin lending. Allowing non-bank lenders to finance margin lending will likely be a welcome move for brokerages and industry associations, which have for years been seeking greater access to financing for the practice. Banks are typically reluctant to finance margin trading out of fear of turbulence in the stock market.<\/p>\n

But Enterprise, what\u2019s factoring?<\/strong> It\u2019s a form of financing where one entity (known as the factor) buys invoices for uncollected receivables at a reduced price, then goes on to collect the full value of the receivables from the third party and pockets the difference. The factor charges a factoring fee in exchange for quickly releasing funds to the company selling the receivables. This fee is a percentage of the receivables, with the rate depending on industry, the volume of receivables being collected, how long the receivables have been outstanding, and most importantly the creditworthiness of the customers paying the receivables. Want more? We\u2019ve got you covered with our explainer on factoring<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Egyptian factoring companies are now able to finance margin lending by brokerage companies under new regulations (pdf) released by the Financial Regulatory Authority (FRA) yesterday. The move is meant to give brokerages access to new sources of funding and stimulate trading on the EGX. Eligible brokers are required to get approval from the FRA before […]<\/p>\n","protected":false},"author":1,"featured_media":0,"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":[8614],"tags":[68,72,164,593,76,871],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-560549","post","type-post","status-publish","format-standard","hentry","category-regulation-watch","tag-egx","tag-enterpriseam","tag-equities","tag-factoring","tag-financial-regulatory-authority","tag-regulation-watch","wpautop","entry"],"acf":{"mongo_id":"c677777d-8336-466e-a0d4-4b6343b426f7","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[560536],"teaser":"","voice_url":""},"yoast_head":"\nNon-bank lenders now allowed to finance margin lending - 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\/03\/03\/non-bank-lenders-now-allowed-to-finance-margin-lending\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Non-bank lenders now allowed to finance margin lending\" \/>\n<meta property=\"og:description\" content=\"Egyptian factoring companies are now able to finance margin lending by brokerage companies under new regulations (pdf) released by the Financial Regulatory Authority (FRA) yesterday. The move is meant to give brokerages access to new sources of funding and stimulate trading on the EGX. 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Representatives from a handful of brokerages and custodians called for regulators to put a maximum limit on the volume of margin trades allowed\u2026","rel":"","context":"In "REGULATION WATCH"","block_context":{"text":"REGULATION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/regulation-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":564235,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/08\/18\/contact-offering-margin-to-hc-brokerages-clients\/","url_meta":{"origin":560549,"position":1},"title":"Contact offering margin to HC Brokerage\u2019s clients","author":"enterpriseam admin","date":"18 August 2021","format":false,"excerpt":"Contact to finance HC Brokerage\u2019s margin traders: Contact Financial Holding\u2019s arm Contact Factoring will finance margin trading by clients of HC Brokerage after signing an agreement with the firm, according to a joint statement (pdf). The non-bank lender will loan EGP 400 mn initially, with each client being eligible for\u2026","rel":"","context":"In "SPEED ROUND: CAPITAL MARKETS"","block_context":{"text":"SPEED ROUND: CAPITAL MARKETS","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round-capital-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/8\/468.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":561756,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/20\/beltone-on-board-to-manage-cbe-margin-trading-support-fund\/","url_meta":{"origin":560549,"position":2},"title":"Beltone on board to manage CBE margin trading support fund?","author":"enterpriseam admin","date":"20 April 2021","format":false,"excerpt":"The Central Bank of Egypt (CBE) has reportedly tapped Beltone Financial to manage a new margin trading fund with a preliminary allocation of EGP 1 bn that will be deployed to support margin lending through brokerages, Al Mal reports, quoting what it says are sources in the know. The fund\u2026","rel":"","context":"In "Banking + Finance"","block_context":{"text":"Banking + Finance","link":"https:\/\/enterpriseam.com\/egypt\/category\/banking-finance\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":565185,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/03\/24\/good-news-brokerage-firms\/","url_meta":{"origin":560549,"position":3},"title":"Good news, brokerage firms","author":"enterpriseam admin","date":"24 March 2021","format":false,"excerpt":"The EGX30 rose 2.2% at today\u2019s close on turnover of EGP 1.12 bn (24% below the 90-day average). Regional investors were net sellers. The index is down 1.3% YTD.In the green: MM Group (+5.9%), Ibnsina Pharma (+5.8%) and Abu Qir Fertilizers (+5.4%).In the red: Orascom Development (-1.1%), EKH (-0.5%) and\u2026","rel":"","context":"In "GO WITH THE FLOW"","block_context":{"text":"GO WITH THE FLOW","link":"https:\/\/enterpriseam.com\/egypt\/category\/go-with-the-flow\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":565423,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/07\/enterprise-explains-margin-trading\/","url_meta":{"origin":560549,"position":4},"title":"Enterprise Explains: Margin Trading","author":"enterpriseam admin","date":"7 April 2021","format":false,"excerpt":"Enterprise Explains: Margin Trading. Margin trading has been in the news a lot lately. The Financial Regulatory Authority wants more of it, but it\u2019s also trying to manage risk in the system with a new set of restrictions. But what is it, exactly? And what could current proposals mean for\u2026","rel":"","context":"In "EXPLAINER"","block_context":{"text":"EXPLAINER","link":"https:\/\/enterpriseam.com\/egypt\/category\/explainer\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/4\/365.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":561437,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/07\/fra-mulls-caps-on-margin-trading\/","url_meta":{"origin":560549,"position":5},"title":"FRA mulls caps on margin trading","author":"enterpriseam admin","date":"7 April 2021","format":false,"excerpt":"New regs to mitigate margin trading risks: Proposals to rein in margin trading under consideration by the Financial Regulatory Authority (FRA) would introduce caps on how much stock investors can buy with borrowed funds, the regulator said (pdf) yesterday. The new regulations \u2014 drafted by the FRA\u2019s advisory committee (pdf)\u2026","rel":"","context":"In "REGULATION WATCH"","block_context":{"text":"REGULATION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/regulation-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/560549","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=560549"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/560549\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/560536"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=560549"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=560549"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=560549"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=560549"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=560549"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}