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.
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