Complex Made Simple

Egypt authority halts foreign stock trading for local brokerages

The Egyptian Financial Supervisory Authority (EFSA) decided to ban local financial institutions from trading foreign securities, saying it exposes investors to risks that Egyptian authorities are unable to monitor, Reuters has reported. Traders said the move came after Egyptian investors suffered losses due to a sharp drop in Facebook shares after the social platform's initial public offering. EFSA said it had received several complaints from people dealing with brokerage firms "stating that they have lost large sums of money as a result of following the guidance and advice these firms gave to invest through them in foreign securities traded on foreign exchanges."