Egypt Market Regulator Eases Rules on Margin Calls in Stocks

Egypt’s stock market regulator eased rules on margin calls by brokerages and secured the government’s approval to tap an investor emergency fund in an attempt to limit volatility when the bourse opens after more than a monthlong closure.

Brokerages will require investors pay margins or present more collateral when the client’s debt reaches 70 percent of the shares’ value at the end of trading each day, up from 60 percent previously, the Egyptian Financial Supervisory Authority, or Efsa, said in a statement on its website. Efsa also obtained Cabinet approval to tap up to 30 percent of an emergency fund to stabilize the market.