Dr. Ashraf El-Sharkawy, the Egyptian Financial Supervisory Authority (EFSA), has ruled out plans to implement Short Selling activities for the Egyptian market. El-Sharkway asserted that such activities have never been introduced in any of the Arab countries up till now. Short Selling system will reversely affect the Egyptian Exchange (EGX), in case of coming into effect, he added. “We are currently looking for new financial instruments within the coming period that would contribute to the market upgrade." EFSA Chairman stated El-Sharkway further noted that the EFSA is keeping in touch with Misr for Central Clearing, Depository & Registry (MCDR) so as to undergo the final tests on the effectiveness of the new mechanisms which will be activated within the coming year. El-Sharkway's comments on the Short selling activities come after the EG-Finance had called for postponing the implementation of such activities giving the chance for the market to witness more stability and to increase the investor awareness. The selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short sellers assume that they will be able to buy the stock at a lower amount than the price at which they sold short.
