{"id":625403,"date":"2018-08-05T04:14:17","date_gmt":"2018-08-05T04:14:17","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/08\/05\/fra-committee-completes-draft-of-short-selling-regs-ahead-of-its-introduction-in-3q2018\/"},"modified":"2018-08-05T04:14:17","modified_gmt":"2018-08-05T04:14:17","slug":"fra-committee-completes-draft-of-short-selling-regs-ahead-of-its-introduction-in-3q2018","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/08\/05\/fra-committee-completes-draft-of-short-selling-regs-ahead-of-its-introduction-in-3q2018\/","title":{"rendered":"FRA committee completes draft of short-selling regs ahead of its introduction in 3Q2018"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-05\"><\/a> <strong>REGULATION WATCH- Shorts are coming: FRA committee completes draft of short-selling regs ahead 3Q2018 introduction:<\/strong> The Financial Regulatory Authority\u2019s (FRA) Capital Markets Committee completed on Thursday its draft of the final framework and rules that will govern short-selling, sources close to the matter <a href=\"http:\/\/www.almalnews.com\/Story\/384832\/11\/%D8%A5%D9%82%D8%B1%D8%A7%D8%B1-%D8%A7%D9%84%D8%B6%D9%88%D8%A7%D8%A8%D8%B7-%D8%A7%D9%84%D9%86%D9%87%D8%A7%D8%A6%D9%8A%D8%A9-%D9%84%D8%A5%D8%B7%D9%84%D8%A7%D9%82-%D8%A7%D9%84%D8%B4%D9%88%D8%B1%D8%AA-%D8%B3%D9%8A%D9%84%D9%8A%D9%86%D8%AC-%D8%A8%D9%86%D9%87%D8%A7%D9%8A%D8%A9-%D8%A7%D9%84%D8%B1%D8%A8%D8%B9-%D8%A7%D9%84%D8%AB%D8%A7%D9%84%D8%AB\">tell Al Mal<\/a>. Short selling will make its debut on the EGX in 3Q2018, the story suggests. Under new regulations, clients looking to short a share \u2014 or borrow shares from their brokers for a small fee then sell it right away, hoping that its price will drop before buying it back, returning it to the broker and pocketing the difference \u2014 will be forced to pay a cash security deposit equivalent to 50% of the value of their borrowed stocks, according to the sources. Brokerages will also be allowed to jump in and close out shorts, repurchase the stocks on behalf of clients if a share rises by 15%. The regs will also allow brokers to re-invest clients\u2019 deposits in any high-yielding investment with guaranteed annual returns.<\/p>\n<p><strong>Background: <\/strong>The FRA\u2019s board had <a href=\"https:\/\/enterprise.press\/stories\/2018\/05\/29\/short-selling-to-be-on-the-investment-menu-soon\/\">approved in May<\/a> amendments to the Capital Market\u2019s Act\u2019s executive regulations that govern short-selling, which included provisions that allow brokerage and securities firms to offer the service. FRA deputy head Khaled El Nashar <a href=\"https:\/\/enterprise.press\/stories\/2018\/06\/11\/fra-will-be-tight-on-shorts-pushes-through-amends-to-listing-regulations\/\">had said last month<\/a>, however, that he expects \u201cvery few brokerages\u201d to win licenses to short, as the authority is planning to restrict the activity to firms that meet certain conditions, such as a strong balance sheet position. Limits will also be placed on number of shares a short seller can borrow for a short position, El Nashar had said. Short selling was introduced to the market through the amended Capital Markets Act, which also opens the door to the issuance of sukuk and commodities and futures exchanges. We\u2019re also <a href=\"https:\/\/enterprise.press\/stories\/2018\/08\/01\/fra-to-legislate-for-short-term-bonds-this-quarter\/\">expecting short-term bonds<\/a> to be on the investment menu soon.<\/p>\n<p>On a related note, <strong>the FRA is hosting a workshop on capital market governance in Cairo today with representative from US counterpart institutions in attendance,<\/strong> <a href=\"http:\/\/www.shorouknews.com\/news\/view.aspx?cdate=02082018&id=0551200d-f2ae-42c3-a6eb-9da93fea5581\">according to Al Shorouk<\/a>. The workshop \u2014 which will focus discussions on capital market oversight and regulation, as well as crimes in the digital age \u2014 will host officials from the US Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), Financial Services Volunteer Corps (FSVC), and Bloomberg.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>REGULATION WATCH- Shorts are coming: FRA committee completes draft of short-selling regs ahead 3Q2018 introduction: The Financial Regulatory Authority\u2019s (FRA) Capital Markets Committee completed on Thursday its draft of the final framework and rules that will govern short-selling, sources close to the matter tell Al Mal. Short selling will make its debut on the EGX [&hellip;]<\/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":[8572],"tags":[72,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-625403","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-enterpriseam","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"53c48b09-a2f5-4b4f-a822-4d5eda6f305b","order":"0","is_powered_by":true,"section_story_id":"29c7745c-3902-4022-a16f-86fd636c1a28","story_type":"1","photo_url":"","photo_position":"above","related_issue":[625392],"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>FRA committee completes draft of short-selling regs ahead of its introduction in 3Q2018 - 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\/2018\/08\/05\/fra-committee-completes-draft-of-short-selling-regs-ahead-of-its-introduction-in-3q2018\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FRA committee completes draft of short-selling regs ahead of its introduction in 3Q2018\" \/>\n<meta property=\"og:description\" content=\"REGULATION WATCH- Shorts are coming: FRA committee completes draft of short-selling regs ahead 3Q2018 introduction: The Financial Regulatory Authority\u2019s (FRA) Capital Markets Committee completed on Thursday its draft of the final framework and rules that will govern short-selling, sources close to the matter tell Al Mal. Short selling will make its debut on the EGX [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2018\/08\/05\/fra-committee-completes-draft-of-short-selling-regs-ahead-of-its-introduction-in-3q2018\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2018-08-05T04:14:17+00:00\" \/>\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\/2018\/08\/05\/fra-committee-completes-draft-of-short-selling-regs-ahead-of-its-introduction-in-3q2018\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/08\/05\/fra-committee-completes-draft-of-short-selling-regs-ahead-of-its-introduction-in-3q2018\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"FRA committee completes draft of short-selling regs ahead of its introduction in 3Q2018\",\"datePublished\":\"2018-08-05T04:14:17+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/08\/05\/fra-committee-completes-draft-of-short-selling-regs-ahead-of-its-introduction-in-3q2018\/\"},\"wordCount\":395,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"keywords\":[\"EnterpriseAM\",\"SPEED ROUND\"],\"articleSection\":[\"Speed Round\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/08\/05\/fra-committee-completes-draft-of-short-selling-regs-ahead-of-its-introduction-in-3q2018\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2018\/08\/05\/fra-committee-completes-draft-of-short-selling-regs-ahead-of-its-introduction-in-3q2018\/\",\"name\":\"FRA committee completes draft of short-selling regs ahead of its introduction in 3Q2018 - 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Negotiations are ongoing with various stakeholders to finetune the rules that will govern shorts, which El Nashar had previously said would be \u201cstrict,\u201d ensuring that only\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":624379,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/09\/06\/short-selling-to-be-introduced-early-in-2019-futures-market-regs-under-study-this-year\/","url_meta":{"origin":625403,"position":1},"title":"Short-selling to be introduced early in 2019, futures market regs under study this year","author":"enterpriseam admin","date":"6 September 2018","format":false,"excerpt":"**#6 REGULATION WATCH- Short-selling to be introduced early in 2019, not this month: Shorts will be on the menu for investors in early 2019, the Financial Regulatory Authority (FRA)\u2019s deputy chairman told Reuters yesterday. The FRA will finalize the regulations governing shorts by the end of September and then spend\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":593098,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/11\/18\/fra-prepares-for-launching-short-selling-by-the-end-of-this-year\/","url_meta":{"origin":625403,"position":2},"title":"FRA prepares for launching short selling by the end of this year","author":"enterpriseam admin","date":"18 November 2019","format":false,"excerpt":"FRA holds consultations to prepare for introduction of short selling by the end of this year: The Financial Regulatory Authority\u2019s (FRA) Capital Markets Advisory Committee has been meeting with industry stakeholders to review the system in place to launch short selling on the EGX, sources told Al Mal. The consultations\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":567387,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/01\/21\/fra-mulls-new-regs-for-asset-portfolio-managers\/","url_meta":{"origin":625403,"position":3},"title":"FRA mulls new regs for asset, portfolio managers","author":"enterpriseam admin","date":"21 January 2020","format":false,"excerpt":"REGULATION WATCH- FRA mulls new regs for asset, portfolio managers: The Financial Regulatory Authority (FRA) is studying new regulations for asset and portfolio managers in a bid to strengthen investor protection and improve market governance, Al Mal reports, citing anonymous sources. Preventing investor interference: One of the proposals on the\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\/1\/663.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":634702,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/01\/22\/fra-drafting-insurance-act-80-done-with-capital-market-act-regs\/","url_meta":{"origin":625403,"position":4},"title":"FRA drafting Insurance Act, 80% done with Capital Market Act regs","author":"enterpriseam admin","date":"22 January 2018","format":false,"excerpt":"LEGISLATION WATCH- The Financial Regulatory Authority (FRA) is drafting an all-encompassing Insurance Act. A draft of the bill \u2014 which will cover everything from car insurance to policies for companies and private equity funds \u2014 will be put up for \u201cnational dialogue\u201d at the end of February before it\u2019s passed\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":625693,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/08\/13\/first-futures-exchange-could-launch-by-years-end\/","url_meta":{"origin":625403,"position":5},"title":"First futures exchange could launch by year\u2019s end","author":"enterpriseam admin","date":"13 August 2018","format":false,"excerpt":"Egypt\u2019s first futures exchange could be launched before the end of the year, Financial Regulatory Authority (FRA) Vice Chairman Khaled El Nashar tells Al Mal. Trading at first will be limited to listed securities, El Nashar said, without elaborating. The FRA is also considering introducing regulations for licensing brokerage firms\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":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/625403","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=625403"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/625403\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/625392"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=625403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=625403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=625403"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=625403"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=625403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}