CAIRO, July 2 (Reuters) – Egyptian authorities said on Tuesday they would launch the short-selling of shares on the stock market during the third quarter of 2019.
Short-selling means securities can be sold before they are acquired, and it increases market liquidity.
Most rules for short-selling have now been finalised, the deputy head of the Financial Regulatory Authority, Khaled el-Nashar, told a group of reporters.
“The only thing still to be finalised is the implementation mechanism, and this is under discussion between the company Misr for Central Clearing and the stock exchange,” he said.
Nashar did not specify a date for the launch of short-selling.
Nashar told Reuters last September that short-selling of shares would become possible from the beginning of 2019. It was not clear why the process has been delayed. (Reporting by Ehab Farouk, Writing by Mahmoud Mourad Editing by Gareth Jones)