FEAS Yearbook FEAS Yearbook 2006 | Page 153

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2006 MISR FOR CLEARING, SETTLEMENT & CENTRAL DEPOSITORY AFFILIATE MEMBER The largest central registry firm among the major and emerging markets in the world, MCSD’s goal is a secure, stable and encouraging investment environment Mohamed S. Abdel Salam Deputy Chairman & Managing Director MCSD was established at the end of 1994 to complete the infra structure of the Egyptian capital market. In time, MCSD has become the largest central registry firm among the major and emerging markets in the world. MCSD’s does not spare any efforts to maintain the highest standard of services provided to the Egyptian market. As a result of its qualified performance, MCSD was awarded 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, Business Initiative Directions (BID), presented its special recognition award to MCSD. Also MCSD 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 MCSD main activities & services Legal Status MCSD is the sole Egyptian CSD providing clearing and settlement services to the Cairo and Alexandria Stock Exchanges (CASE). MCSD operates 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 MCSD's vaults. All securities are treated as fungible and may be transferred or pledged by bookkeeping entry without actual physical delivery. MCSD’s authorized capital is LE 50 million, issued capital is LE 40 million and paid capital is LE 18.75 million. 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 MCSD’s front office, the call center, the internet, the SMS and finally through direct phones or faxes. Private Joint-Stock Company The assessment revealed that MCSD has abided by all the rules and high standards set by the SEC in Rule 17f-5 which have been developed to be more strict as compared to Rule 17f-7 in order to secure American foreign investments. A secure, stable and encouraging investment environment is the goal of MCSD. 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+1 Treasury Bonds T+2 Active securities T+3 Dematerialized securities T+4 Physical securities 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 +202 5971 522-505-506-509 Fax +202 5971 670-523 Website www.mcsd.com.eg * Please refer to page 70 for the Egypt country report. PAGE 151