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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2007<br />
MISR FOR CLEARING, DEPOSITORY & REGISTRY<br />
AFFILIATE MEMBER<br />
Secure, stable and an encouraging<br />
investment environment is the goal of<br />
MCDR.<br />
Mohamed S. Abdel Salam<br />
Chairman & Managing Director<br />
MCDR was established at the end of 1994 to<br />
complete the infrastructure of the Egyptian<br />
capital market. Over time, MCDR has<br />
become the largest central registry firm<br />
among the major and emerging markets in<br />
the world. MCDR’s staff spares no effort to<br />
maintain the highest standard of services<br />
provided to the Egyptian market. As a result<br />
of its qualified performance, MCDR was<br />
awarded the International Gold Star for<br />
Quality in Geneva in 2001. For significant<br />
contribution to the business world, for high<br />
standing and professionalism demonstrated<br />
by prestigious performance, B.I.D. (Business<br />
Initiative Directions) presented its special<br />
recognition award to MCDR, the Arch of<br />
Europe for Quality and Technology in<br />
Frankfurt in 2006. Also MCDR was granted<br />
the highest level of efficiency, following the<br />
results of an assessment panel of depository<br />
companies conducted by JP Morgan-Chase,<br />
with a score of 1.25 points on a scale of 1 to<br />
3 where a depository that closely resemble<br />
the best practice is rated 1, meet some of<br />
the requirements but not fully meet the<br />
preferred practice rated 2 and finally<br />
depositories that are deficient are rated 3.<br />
The assessment revealed that MCDR has<br />
abided by all the rules and high standards<br />
set by the SEC in Rule 17f-5 which has been<br />
developed to be tougher by amendments in<br />
Rule 17f-7 to secure American foreign<br />
investments. Secure, stable and an<br />
encouraging investment environment is the<br />
goal of MCDR. This is never enough as<br />
MCDR will proceed its continuous efforts<br />
working towards being at the top of all elite<br />
depositories<br />
Role of the Depository<br />
MCDR is the sole Egyptian CSD providing<br />
clearing and settlement services to the Cairo<br />
and Alexandria Stock Exchanges (CASE).<br />
MCDR operates both the depository and the<br />
clearinghouse. It is a not for-profit private<br />
company owned by the stock exchanges,<br />
local banks and its participants. It was<br />
incorporated under the Capital Market Law<br />
No 95 of 1992, commenced operations in<br />
October 1996 and is currently governed by<br />
the Depository and Central Registry Law No<br />
93 of 2000. It is regulated by the Capital<br />
Markets Authority. Use of the central<br />
depository in the market for settlement and<br />
safekeeping is compulsory by law, where<br />
securities in the depository are held in<br />
certificated form. Equities are held via bookentry,<br />
with certificates immobilized in MCDR's<br />
vaults. All securities are treated as fungible<br />
and may be transferred or pledged by<br />
bookkeeping entry without actual physical<br />
delivery. MCDR’s authorized capital is 100<br />
million L.E, issued capital is 40 million L.E<br />
and paid capital is 40 million L.E.<br />
MCSD Main Activities & Services<br />
1. Clearing and settlement of operations<br />
executed at CASE.<br />
2. Central depository and registry of all listed<br />
and unlisted securities.<br />
3. Management of securities accounts for<br />
custodian banks and issuers.<br />
4. Handling corporate actions (cash and<br />
stock dividends etc…) according to the<br />
issuers’ assemblies’ decisions.<br />
5. Management of the Settlement Guarantee<br />
Fund to eliminate suspended movements<br />
due to brokers’ defaults (securities and/or<br />
cash).<br />
6. Management of a pledge system for all<br />
securities lodged into the central depository.<br />
7. Repatriation of international investors’<br />
funds.<br />
8. Customer servicing through the MCDR’s<br />
front office, the call center, the Internet, the<br />
SMS and finally through direct phones or<br />
faxes.<br />
Legal Status<br />
Private Joint-Stock Company<br />
Type of Commercial Entity<br />
Not for-profit company<br />
Regulated by<br />
Depository and Registry law number 93 of<br />
year 2000<br />
Form of Securities<br />
Immobilized in the book entry form<br />
Form of Settlement<br />
Net cash settlement, gross securities<br />
settlement<br />
Settlement Dates<br />
T+0 Same Day Trading Settlement<br />
T+1 Treasury Bonds<br />
T+2 Active securities<br />
T+3 Dematerialized securities<br />
T+4 Physical securities<br />
CONTACT INFORMATION<br />
Contact Name Mohamed S. Abdel Salam E-mail m.abdsalam@mcsd.com.eg Website www.mcsd.com.eg<br />
Address 70 El-Gomhoria St., P.O. Box 1536 Attaba, Cairo, Egypt<br />
Phone +202 5971 522-505-506-509 Fax +202 5971 670-523<br />
PAGE 150<br />
* Please refer to page 68 for the Egypt country report.