{"id":629362,"date":"2018-05-29T03:41:27","date_gmt":"2018-05-29T03:41:27","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/05\/29\/short-selling-to-be-on-the-investment-menu-soon\/"},"modified":"2018-05-29T03:41:27","modified_gmt":"2018-05-29T03:41:27","slug":"short-selling-to-be-on-the-investment-menu-soon","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/05\/29\/short-selling-to-be-on-the-investment-menu-soon\/","title":{"rendered":"Short selling to be on the investment menu soon?"},"content":{"rendered":"

<\/a> REGULATION WATCH- EGX-listed companies could soon have to contend with short sellers. <\/strong>The Financial Regulatory Authority\u2019s (FRA) board of directors has reportedly approved proposed amendments to the Capital Market Act\u2019s executive regulations that govern short-selling, Youm7 reports<\/a>. A committee of FRA consultants suggested that the amended regulations include provisions that allow brokerage and securities firms to offer short-selling. Details are scarce, but we\u2019ve been expecting the amended executive regulations to the Capital Markets Act<\/a>, which were set to be issued in late April or early May<\/a>, to introduce mechanisms and rules for short-selling and short-term bonds, alongside a host of other financial instruments, such as sukuk and commodities and futures exchanges.<\/p>\n

Daddy, what\u2019s a short seller? <\/strong>To quote the 1985 television commercial<\/a>, it\u2019s a question a child might ask, but not a childish question. Think of it as making a wager that a share will decline in value. You borrow a share (from your broker, often via a long-term holder of a stock who lends it for a small fee), then sell it right away. You then wait for it to go down before buying it back and returning it to its rightful owner, pocketing the difference between the price at which you sold and at which you bought the share back. The catch? Unlimited downside<\/strong> \u2014 and little control over the direction of the stock, unless you\u2019re one of those shorts who uses public pressure to drive down a share price. There is a certain class of investor who loves to short, but it is pretty much the bane of listed companies everywhere.<\/p>\n

This short video is probably the most to-the-point explainer<\/strong><\/a> we\u2019ve seen on the subject (watch, runtime: 3:00).<\/p>\n","protected":false},"excerpt":{"rendered":"

REGULATION WATCH- EGX-listed companies could soon have to contend with short sellers. The Financial Regulatory Authority\u2019s (FRA) board of directors has reportedly approved proposed amendments to the Capital Market Act\u2019s executive regulations that govern short-selling, Youm7 reports. A committee of FRA consultants suggested that the amended regulations include provisions that allow brokerage and securities firms […]<\/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-629362","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-enterpriseam","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"7733a2f0-76d0-4c8a-ab2e-d8ac16e3ff29","order":"0","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[629355],"teaser":"","voice_url":""},"yoast_head":"\nShort selling to be on the investment menu soon? - 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\/05\/29\/short-selling-to-be-on-the-investment-menu-soon\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Short selling to be on the investment menu soon?\" \/>\n<meta property=\"og:description\" content=\"REGULATION WATCH- EGX-listed companies could soon have to contend with short sellers. 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Short selling will make\u2026","rel":"","context":"In "Speed Round"","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":627749,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/06\/11\/fra-will-be-tight-on-shorts-pushes-through-amends-to-listing-regulations\/","url_meta":{"origin":629362,"position":1},"title":"FRA will be tight on shorts, pushes through amends to listing regulations","author":"enterpriseam admin","date":"11 June 2018","format":false,"excerpt":"REGULATION WATCH- Hear ye, brokers looking to short: Meanwhile, FRA is looking into imposing \u201cstrict\u201d compliance regulations for brokerages looking to get into short selling, FRA deputy head Khaled El Nashar reportedly said on Sunday. The regulations will ensure that only brokerages with the balance sheet strength to offer short\u2026","rel":"","context":"In "Speed Round"","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":624323,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/09\/05\/short-selling-coming-at-the-end-of-the-month\/","url_meta":{"origin":629362,"position":2},"title":"Short-selling coming at the end of the month?","author":"enterpriseam admin","date":"5 September 2018","format":false,"excerpt":"REGULATION WATCH- Short-selling is coming at the end of September, Financial Regulatory Authority (FRA) deputy head Khaled El Nashar said yesterday, Al Mal reports. 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 "Speed Round"","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":598349,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/05\/22\/egypts-misr-clearing-to-provide-short-selling-platform\/","url_meta":{"origin":629362,"position":3},"title":"Egypt\u2019s Misr Clearing to provide short selling platform","author":"enterpriseam admin","date":"22 May 2019","format":false,"excerpt":"REGULATION WATCH- Regulator to give Misr Clearing key role in short selling: Misr for Central Clearing, Depository & Registry (MCDR) will provide a platform for traders and brokerage firms to use for short selling under changes to recently-issued short selling regulations, Egyptian Capital Markets Associations (ECMA) Chairman Mohamed Maher said.\u2026","rel":"","context":"In "Speed Round"","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":601388,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/02\/27\/fra-issues-regulations-to-activate-short-selling\/","url_meta":{"origin":629362,"position":4},"title":"FRA issues regulations to activate short selling","author":"enterpriseam admin","date":"27 February 2019","format":false,"excerpt":"Habemus short selling: The Financial Regulatory Authority (FRA) took a giant leap forward in the drive to bring short selling to the Egyptian Exchange when it issued regulations yesterday that allow brokerage firms to act as market makers by finding lenders and borrowers of stocks, the market regulator said in\u2026","rel":"","context":"In "Speed Round"","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":599136,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/19\/egypts-fra-grants-short-selling-licenses-to-efg-cib-aaib\/","url_meta":{"origin":629362,"position":5},"title":"Egypt\u2019s FRA grants short selling licenses to EFG, CIB, AAIB","author":"enterpriseam admin","date":"19 June 2019","format":false,"excerpt":"EFG, CI and AAIS take out short-selling licenses: The brokerage arms of EFG Hermes, CI Capital and the Arab Arfrican International Securities are now licensed short sellers, according to a Financial Regulatory Authority statement. 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