Qatar financial regulator issues short selling and SLB rules

The Qatar Stock Exchange (QSE) announced that Bandar Bin Mohammed Bin Saoud Al-Thani, the Qatar Central Bank (QCB) governor and the Qatar Financial Markets Authority (QFMA) board chair, issued Covered Short Selling Rules and Securities Lending and Borrowing (SLB) Rules.

Covered short selling means that any of the authorized persons (market maker, liquidity provider, qualified investor) sell securities either borrowed, or enter into borrowing arrangements, in order to close out an open short position on the settlement date in accordance with these rules.

Securities Lending and Borrowing also means that the lender transferring the ownership of the securities temporarily to the borrower or selling them to the borrower in accordance with the procedures approved for this purpose with commitment or promise from the borrower to return or resell them to the lender upon his request at any time during the time frame agreed upon or at its end unless they agreed otherwise.

The move is expected to contribute to increasing trading volumes and liquidity rates in the market that will help maximize the returns of stakeholders in the Qatari capital market, as well as boost new financial services activities.

“The QSE management has expressed its appreciation and gratitude for QFMA role in developing financial services in the market and supporting QSE’s efforts aimed at enhancing liquidity and providing diversified set of investment tools for Qatari and foreign investors, as well as increasing the trading volumes and supporting the business of financial services companies licensed by the QFMA,” the QSE said in a statement.


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