FEDERATION OF EURO-ASIAN STOCK EXCHANGES
SEMI ANNUAL REPORT APRIL 2008
MISR FOR CLEARING, DEPOSITORY & REGISTRY
AFFILIATE MEMBER
Secure, stable and encouraging investment
environment is the goal of MCDR.
Mohamed S. Abdel Salam
Chairman & Managing Director
MCDR was established by the end of 1994 to
complete the infra structure of the Egyptian
capital market. In time, MCDR has become the
biggest central registry firm among the major
and emerging markets in the world. MCDR’s
staff never spare any efforts to maintain the
highest standard of services provided to the
Egyptian market. As a result of its qualified
performance, MCDR was awarded
International Star Award for Quality WQC in the
Diamond for the Quality standards
commitment applied through MCDR on
November 26, 2007 in the Concorde La
Fayette in Paris with the ISO in Management (QC100), the International Gold Star for Quality
in Geneva in 2001 for significant contribution
to the business world, for high standing and
professionalism demonstrated by prestigious
performance, B.I.D. (Business Initiative
Directions) presented its special recognition
award to MCDR. Also MCDR was granted the
highest level of efficiency, following the results
of an assessment panel of depository
companies conducted by JPMorgan–Chase,
with a score of 1.25 points on a scale of 1 to 3
where depository that closely resemble the
best practice is rated 1, meet some of the
requirements but not fully meet the preferred practice rated 2 and finally depositories that
are deficient are rated 3.
Role of the Depository MCDR Main Activities & Services Legal Status
MCDR is the sole Egyptian CSD providing
clearing and settlement services to the Cairo
and Alexandria Stock Exchanges (CASE).
MCDR operates as both the depository and
the clearing house. It is a not for-profit private
company owned by the stock exchanges,
local banks and its participants. It was
incorporated under the Capital Market Law No
95 of 1992, commenced operations in October
1996 and is currently governed by the
Depository and Central Registry Law No 93 of
2000. It is regulated by the Capital Markets
Authority (CMA). 1. Clearing and settlement of operations
executed at CASE.
2. Central depository and registry of all listed
and unlisted securities
3. Management of securities accounts for
custodian banks and issuers.
4. Handling corporate actions (cash and stock
dividends etc.) according to the issuers’
assemblies’ decisions.
5. Management of the Settlement Guarantee
Fund to eliminate suspended movements due
to brokers’ defaults (securities and/or cash).
6. Management of a pledge system for all
securities lodged into the central depository.
7. Repatriation of international investors’ funds.
8. Customer servicing through the MCDR’s
front office, the call center, the Internet, the
SMS and finally through direct phones or
faxes. Private Joint-Stock Company
Use of the central depository in the market for
settlement and safekeeping is compulsory by
law, where securities in the depository are held
in certificated form. Equities are held via book-
entry, with certificates immobilized in MCDR's
vaults. All securities are treated as fungible
and may be transferred or pledged by
bookkeeping entry without actual physical
delivery.
The assessment revealed that MCDR has
abided by all the rules and high standards set
by the SEC in Rule 17f-5 which even have
been developed to be more tough by
amendments in Rule 17f-7 to secure American
foreign investments. Secure, stable and
encouraging investment environment is the
goal of MCDR. This is never enough as MCDR
will proceed its stable steps towards the top of
elite depositories.
Type of Commercial Entity
Not for-profit company
Regulated by
Depository and Registry law number 93
of year 2000
Form of Securities
Immobilized in the book entry form
Form of Settlement
Net cash settlement, gross securities
settlement
Settlement Dates
T+0 Same Day Trading Settlement
T+1 Treasury Bonds
T+2 Dematerialized securities
T+4 Physical securities
MCDR’s authorized capital is EGP 250 million
issued and paid capital is EGP 80 million.
* Please refer to page 68 for the Egypt country report.
CONTACT INFORMATION
Contact Name Mohamed S. Abdel Salam
E-mail [email protected]
Address 70 El-Gomhoria St., P.O. Box 1536 Attaba, Cairo, Egypt
Phone +2022 5971 505-506-509 Fax +202 5971 670-523
Website www.mcdr.com.eg
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