The Clap
According to Al Mal News, Dr. Mohamed Farid, president of the FRA, met with presidents of brokerages to discuss details about margin trading.
Margin Trading
Margin trading is when investors borrow money from brokers to have more liquidity to buy more securities in the market while brokers earn a certain percentage in return.
The Deets
It was suggested that the managing director of the brokerage should be the person who decides which shares can be traded through margin buying, rather than the board of directors.
The importance of discussing the client’s credit status and knowing their borrowing history before they can be allowed to margin trade was also discussed. It was also suggested that brokerages inquire about their clients from the EGX and Misr for Central Clearing, Depository, and Registry (MCDR) directly, to lower the inquiry cost for every brokerage individually asking about their customers.
FRA puts margin trading on the table 💰
