EGX Statement with Short Selling Cr

On 15 May 2019, the Egyptian Exchange (“EGX”) issued a statement[1] announcing the criteria for the selection of securities that are eligible for short selling. This comes following the Financial regulatory Authority’s (“FRA”) issuance of decision No. 268 of 2019 on short selling last February, which we have covered in detail in the Egypt Legal Update Issue of March 2019, Week 2. The EGX statement announces that a total of 30 securities are currently eligible for short selling on the Egyptian stock exchange, including traded index fund certificates (ETFs). Eligible securities shall be subject to review every six months. EGX’s criteria for securities to be eligible for shorting include that the number of the issuing company’s shares be at least 300 million, that the share constitutes at least 0.005% of the market’s free float, and that it is traded on 95% of trading days. Brokerage firms wishing to engage in short selling must fulfil the necessary technical requirements and submit a request to be licensed by FRA.   [1] The Egyptian Exchange, “EGX issues the criteria for the selection of securities that are eligible for short selling”, 15 May 2019, available through this link (in Arabic).