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FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT APRIL 2011<br />
MACEDONIAN CENTRAL SECURITIES DEPOSITORY (MCSD)<br />
AFFILIATE MEMBER<br />
Stevan Sapceski<br />
Executive Director<br />
The main goal of MCSD is to help<br />
government to keep economic stability, and<br />
also to help investors, custodian banks and<br />
issuers by providing fast and reliable<br />
services.<br />
Macedonian Central Securities Depository is one<br />
of the central links in Capital Market structure,<br />
and as such plays a big role in development of<br />
Macedonian Capital Market.<br />
Macedonian economy is small and is under big<br />
influence of surrounding economies and world<br />
economic crisis. The main goal in such<br />
environment for Macedonian Central Securities<br />
Depository as one of the main financial<br />
institutions is to help government in its efforts to<br />
keep economic stability, and also to help<br />
investors, custodian banks and issuers by<br />
providing fast and reliable services. In year to<br />
come, Macedonian Central Securities Depository<br />
will focus on ongoing development of new<br />
services.<br />
In year 2008, Macedonian Central Securities<br />
Depository was helping investors by reducing the<br />
cost of settlement of trade transactions by 27%<br />
and is hoping that this is good effort in providing<br />
a suitable ground to increase market trade<br />
volume.<br />
General Information<br />
The purpose of the Macedonian Central Securities<br />
Depository (MCSD) is to establish central securities<br />
register comprising all active shares, bonds and<br />
other financial instruments in Republic of<br />
Macedonia. This will lead to better access and<br />
distribution of information about the issuers and<br />
securities to:<br />
• Investors<br />
• Foreign investors<br />
• Holders of restrictive rights<br />
• Issuers<br />
• Brokers<br />
• Macedonian Stock Exchange (MSE)<br />
• Pledge Register<br />
• Other authorized institutions in accordance with<br />
the law.<br />
Regulatory Environment<br />
The MCSD is Self Regulatory Organization, under<br />
authority of Security Exchange Commission.<br />
Participants<br />
At present time, there are 22 participants, banks<br />
and brokerage houses.<br />
Services Provided<br />
The MCSD is providing the following services to the<br />
participants in the operations, issuers and holders<br />
securities:<br />
• recording of the securities in the Depository;<br />
• notification of the issuers and holders of securities<br />
about the condition on their accounts;<br />
• clearing and settlement of the liabilities arising<br />
from the transactions with securities;<br />
• rendering services connected with the corporate<br />
activities;<br />
• other services that arise from the ownership and<br />
transactions with securities, arising from the scope<br />
of its operations.<br />
Form of Securities<br />
All securities are registered and dematerialized.<br />
Depository Procedures<br />
Records are kept in the Depository of the issued<br />
securities and ownership positions, rights of the<br />
securities holders, the unique identification of the<br />
securities and their holders, possible limitations in<br />
the exercise of such rights, rights of third parties<br />
connected with the securities and other data<br />
referring to such rights, transfer to the securities<br />
accounts shall be made and other services<br />
connected with keeping records of the securities<br />
shall be provided. All securities shall be recorded in<br />
the Depository in a procedure, on conditions and in<br />
a manner determined with these Rules and with the<br />
guidelines of the Depository.<br />
ISIN is allocated to all securities upon their<br />
registration in the Depository. ISIN shall contain data<br />
on the issuer, rights arising for the holders of those<br />
securities and other elements of the securities. The<br />
procedure, conditions and manner of allocating ISIN<br />
is determined by the guidelines of the Depository.<br />
The securities are recorded in special accounts with<br />
the Depository. With the purpose of recording the<br />
securities, the Depository is opening accounts for<br />
the issuers and holders of the securities.<br />
The opening and closing of the securities accounts,<br />
recording, changes and deletion of the ownership<br />
positions in the accounts of the securities holders,<br />
as well as other actions connected with the changes<br />
occurred in the accounts maintained in the<br />
Depository are performed by a sole account<br />
operator. The manner and procedure of opening<br />
and closing an account and the types of accounts<br />
with the Depository is prescribed within the<br />
guidelines of the Depository.<br />
Principles of Clearing & Settlement<br />
Main principle of clearing and settlement is delivery<br />
versus payment.<br />
Settlement Cycle<br />
Settlement cycle is usually T+3, but it is possible to<br />
settle transactions from T+1, to T+n<br />
Clearing & Settlement Procedures<br />
• CSD performs the clearing and settlement of the<br />
transactions with securities that were concluded on<br />
the MSE.<br />
• The clearing and the settlement of the<br />
transactions are performed in accordance with the<br />
principle “delivery versus payment”, i.e. the transfer<br />
of securities related to the transactions with<br />
securities is performed through a simultaneous<br />
exchange of securities and payment. The settlement<br />
is performed on gross basis.<br />
• In MCSD frame the subject of clearing and<br />
settlement are all the transactions with securities<br />
concluded on the MSE.<br />
• The MCSD performs the clearing and settlement<br />
of the transactions with securities based on the data<br />
received from the MSE on the trading day. The data<br />
received from the MSE contains elements<br />
necessary for clearing and settlement of the<br />
matched transactions.<br />
• After the MCSD receives the matched trades from<br />
the MSE, the transaction is obligatory for both sides<br />
included in the stated transaction.<br />
• The transactions received from the MSE are final<br />
and cannot be unilaterally canceled by the<br />
participant in the clearing (the broker). Only the<br />
MCSD is allowed, by request from the MSE and<br />
with a special purpose for correction of errors, to<br />
perform some changes or to cancel the<br />
transactions.<br />
• Before the settlement, the participant in the<br />
clearing–the seller, is obliged to provide securities<br />
on his/on his client the securities account, and the<br />
participant in the clearing–the buyer, is obliged to<br />
provide cash on his account for cash settlement for<br />
each transaction.<br />
Macedonian CSD Future Outlook 2009<br />
These are the main issues on which Macedonian<br />
CSD will focus during 2009:<br />
In Progress<br />
• Start of Securities Lending System in practice<br />
• Updating of Business Continuity Plan<br />
• Developing value added services for Issuers of<br />
securities<br />
• Maintenance of Government securities<br />
• Developing electronic system for Custodian banks<br />
Planned<br />
• Distributed system for account holders<br />
• Change of trades processing and pre-clearing<br />
• Change of by-laws and instructions according to<br />
change of trade processing<br />
* Please refer to page 88 for the Macedonian country report.<br />
CONTACT INFORMATION<br />
Contact Name Ms. Sofija Vidovic E-mail vidoviks@cdhv.org.mk Website www.cdhv.org.mk<br />
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