The Egyptian Financial Regulatory’s (FRA) chairman Mohamed Omran has approved granting four companies the licence to conduct short-selling transactions.
The four companies include EFG Hermes Securities Brokerage, Financial Brokerage Group, Commercial International Brokerage Company (CIBC), and Arab African International Securities, FRA said in a statement on Tuesday.
Short selling is the sale of a security that is not owned by the seller, or that the seller has borrowed, to be bought back at a lower price to make a profit. The profit equals the difference between the sale price and the purchase price, minus the interest incurred for borrowing the security.
Earlier in June, FRA granted Arqaam Securities Brokerage a licence to conduct short-selling transactions.