Shortselling rules are finally here, but trading isn’t

Short selling finally has a framework and a path to implementation. a new rulebook (pdf) first laid out the rules

We were already waiting: Omar Radwan told us floated short selling in 2019 51 brokerages

What changes mechanically

Shareholders of an EGX-listed company can collectively lend out up to 40% of the company’s freefloat

How the caps stack up:

Short sellers can’t pile onto a falling stock.

Sweetening the terms for lenders:

Brokerages need fewer hands on deck:

The appetite question

The timing lines up with a new class of investor built to use exactly this kind of capacity. Egypt’s first hedge funds

The move is set to give Egypt’s still-thin derivatives market another push.

But a stronger shortselling framework does not necessarily mean immediate demand.

What’s still missing

Only a subset of EGX-listed stocks will be eligible for short selling.

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