FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2012
MISR FOR CLEARING, SETTLEMENT & CENTRAL DEPOSITORY
Secure, stable and encouraging investment
environment is the goal of MCDR.
Mohamed S. Abdel Salam
Chairman & Managing Director
MCDR was established at 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
Role of the Depository
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).
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.
MCDR’s authorized capital is EGP
250 million issued and paid capital
is EGP 140 million.
MCDR Main Activities & Services
1. Clearing and settlement of operations
executed at the Egyptian Exchange.
2. Central depository and registry of all listed
and unlisted securities
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.
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. Form of Settlement
Legal Status
Private Joint-Stock Company
Type of Commercial Entity
Not for-profit company
Regulated by
Depository and Registry law number 93
of year 2000
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.
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
Misr for Central Clearing, Depository & Registry
- MCDR’s achievements through year 2009
• MCDR was granted A+ in Thomas Murray
Depository Risks assessments.
• MCDR signed a NDA with Linkup Markets to
become a member.
• MCDR signed a MoU with JASDEC Japan
for mutual co-operation.
• MCDR was granted ISO 27001 which allows
the company to operate an Information
Security Management System
• MCDR issued its first Egyptian Depository
Receipt
• MCDR was granted the license by Egyptian
Financial Supervisory Authority - EFSA to act
as a Depository Bank.
• MCDR opened accounts with Clearstream
and Eurobank for securities and cash
settlements.
Form of Securities
Immobilized in the book entry form
* Please refer to page 55 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
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Website www.mcdr.com.eg