Qatar introduces sec lending and short selling

The Qatar Stock Exchange (QSE) has launched an initiative to introduce securities lending and short-selling activity.

The move has been made in cooperation with the securities regulator Qatar Financial Markets Authority (QFMA) and Qatar Depositary (Edaa), the local central securities depository.

Both short selling and securities lending activity will be subject to rules issued by the QFMA.

Furthermore, short selling will be allowed only for market makers, liquidity providers and qualified investors, along with cases approved by the QFMA.

In addition, sec lending transactions will be executed through the Edaa trading system and custodians licensed by the QFMA.

According to the acting CEO of the QSE, Abdulaziz Nasser Al Emadi, the move is essential for Qatar to develop a derivatives market and will contribute to upgrading the Qatari market to advanced status.

Saudi Arabia was the first Middle East state to introduce short selling and securities lending back in 2017.

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