HC Securities has obtained the approval of the Financial Regulatory Authority (FRA) to carry out securities’ lending operations with the purpose of selling, to implement the provisions of the authority’s decision No 268 for the year 2019. This makes it one of the first companies to obtain a license to practice this activity.
The mechanism of short selling is a tool for attracting new funds to the Egyptian capital market, which contributes to increasing trading volume. Investors can profit even if stock prices fall.
In February 2019, the Financial Regulatory Authority announced its regulatory decision on short selling mechanism, noting that it is close to completing the necessary technical structure to implement this mechanism between MCSD, the Egyptian Exchange (EGX), brokerage companies, and custodians.
In May 2019, the EGX issued its decisions regarding the list of securities allowed to carry out money-purchase transactions and their selection criteria. This included 29 companies listed in the main market in addition to the index fund. The list is reviewed periodically.
Hassan Shoukry, managing director of HC Securities, said that the company’s securities trading and custody departments are working diligently to execute the transactions successfully, ensuring customer satisfaction.
He added, “I believe that the Egyptian market, by activating the short selling mechanism, is finally moving toward competing with its counterpart markets in the world, as it is important to expand the scope of investment decisions in front of the client.”
HC Securities is one of the largest securities trading companies in Egypt according to the volume of trading.
The company provides services to a large base of corporate customers and significant individual investors. It is a subsidiary of HC Securities and Investment, established in 1996.