Egypt Sets 50 Percent Cash Collateral Limit in New Rules for Short Selling

Egypt has issued new rules for short selling on the Egyptian Exchange, requiring investors to provide cash collateral equal to at least 50% of the market value of borrowed securities. The Financial Regulatory Authority approved the framework under Resolution No. 155 of 2026 as part of efforts to increase trading and add more investment tools to the market.

Short selling allows an investor to borrow shares, sell them and buy them back later. The investor makes money if the price falls but faces…