FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT APRIL 2009
MACEDONIAN CENTRAL SECURITIES DEPOSITORY (MCSD)
AFFILIATE MEMBER
The main goal of MCSD is to help
government to keep economic stability, and
also to help investors, custodian banks and
issuers by providing fast and reliable
services.
Stevan Sapceski
Executive Director
Depository as one of the main financial
institutions is to help government in its efforts to
keep economic stability, and also to help
investors, custodian banks and issuers by
providing fast and reliable services. In year to
come, Macedonian Central Securities Depository
will focus on ongoing development of new
services. In year 2008, Macedonian Central Securities
Depository was helping investors by reducing the
cost of settlement of trade transactions by 27%
and is hoping that this is good effort in providing
a suitable ground to increase market trade
volume.
General Information
The purpose of the Macedonian Central Securities
Depository (MCSD) is to establish central securities
register comprising all active shares, bonds and
other financial instruments in Republic of
Macedonia. This will lead to better access and
distribution of information about the issuers and
securities to:
• Investors
• Foreign investors
• Holders of restrictive rights
• Issuers
• Brokers
• Macedonian Stock Exchange (MSE)
• Pledge Register
• Other authorized institutions in accordance with
the law. securities and their holders, possible limitations in
the exercise of such rights, rights of third parties
connected with the securities and other data
referring to such rights, transfer to the securities
accounts shall be made and other services
connected with keeping records of the securities
shall be provided. All securities shall be recorded in
the Depository in a procedure, on conditions and in
a manner determined with these Rules and with the
guidelines of the Depository. Regulatory Environment
The MCSD is Self Regulatory Organization, under
authority of Security Exchange Commission. The securities are recorded in special accounts with
the Depository. With the purpose of recording the
securities, the Depository is opening accounts for
the issuers and holders of the securities. principle “delivery versus payment”, i.e. the transfer
of securities related to the transactions with
securities is performed through a simultaneous
exchange of securities and payment. The settlement
is performed on gross basis.
• In MCSD frame the subject of clearing and
settlement are all the transactions with securities
concluded on the MSE.
• The MCSD performs the clearing and settlement
of the transactions with securities based on the data
received from the MSE on the trading day. The data
received from the MSE contains elements
necessary for clearing and settlement of the
matched transactions.
• After the MCSD receives the matched trades from
the MSE, the transaction is obligatory for both sides
included in the stated transaction.
• The transactions received from the MSE are final
and cannot be unilaterally canceled by the
participant in the clearing (the broker). Only the
MCSD is allowed, by request from the MSE and with
a special purpose for correction of errors, to
perform some changes or to cancel the
transactions.
• Before the settlement, the participant in the
clearing–the seller, is obliged to provide securities
on his/on his client the securities account, and the
participant in the clearing–the buyer, is obliged to
provide cash on his account for cash settlement for
each transaction.
Macedonian Central Securities Depository is one
of the central links in Capital Market structure,
and as such plays a big role in development of
Macedonian Capital Market.
Macedonian economy is small and is under big
influence of surrounding economies and world
economic crisis. The main goal in such
environment for Macedonian Central Securities
Participants
At present time, there are 22 participants, banks
and brokerage houses.
Services Provided
The MCSD is providing the following services to the
participants in the operations, issuers and holders
securities:
• recording of the securities in the Depository;
• notification of the issuers and holders of securities
about the condition on their accounts;
• clearing and settlement of the liabilities arising
from the transactions with securities;
• rendering services connected with the corporate
activities;
• other services that arise from the ownership and
transactions with securities, arising from the scope
of its operations.
Form of Securities
All securities are registered and dematerialized.
Depository Procedures
Records are kept in the Depository of the issued
securities and ownership positions, rights of the
securities holders, the unique identification of the
ISIN is allocated to all securities upon their
registration in the Depository. ISIN shall contain data
on the issuer, rights arising for the holders of those
securities and other elements of the securities. The
procedure, conditions and manner of allocating ISIN
is determined by the guidelines of the Depository.
The opening and closing of the securities accounts,
recording, changes and deletion of the ownership
positions in the accounts of the securities holders,
as well as other actions connected with the changes
occurred in the accounts maintained in the
Depository are performed by a sole account
operator. The manner and procedure of opening
and closing an account and the types of accounts
with the Depository is prescribed within the
guidelines of the Depository.
Principles of Clearing & Settlement
Main principle of clearing and settlement is delivery
versus payment.
Settlement Cycle
Settlement cycle is usually T+3, but it is possible to
settle transactions from T+1, to T+n
Clearing & Settlement Procedures
• CSD performs the clearing and settlement of the
transactions with securities that were concluded on
the MSE.
• The clearing and the settlement of the
transactions are performed in accordance with the
Macedonian CSD Future Outlook 2009
These are the main issues on which Macedonian
CSD will focus during 2009
In Progress
• Start of Securities Lending System in practice
• Updating of Business Continuity Plan
• Developing value added services for Issuers of
securities
• Maintenance of Government securities
• Developing electronic system for Custodian banks
Planned
• Distributed system for account holders
• Change of trades processing and pre-clearing
• Change of by-laws and instructions according to
change of trade processing
* Please refer to page 92 for the Macedonian country report.
CONTACT INFORMATION
Contact Name Ms. Sofija Vidovic
E-mail [email protected]
Website www.cdhv.org.mk
PAGE 147