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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2006<br />
MISR FOR CLEARING, SETTLEMENT & CENTRAL DEPOSITORY<br />
AFFILIATE MEMBER<br />
The largest central registry firm among the<br />
major and emerging markets in the world,<br />
MCSD’s goal is a secure, stable and<br />
encouraging investment environment<br />
Mohamed S. Abdel Salam<br />
Deputy Chairman & Managing Director<br />
MCSD was established at the end of 1994 to<br />
complete the infra structure of the Egyptian<br />
capital market. In time, MCSD has become<br />
the largest central registry firm among the<br />
major and emerging markets in the world.<br />
MCSD’s does not spare any efforts to<br />
maintain the highest standard of services<br />
provided to the Egyptian market. As a result<br />
of its qualified performance, MCSD 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, Business<br />
Initiative Directions (BID), presented its<br />
special recognition award to MCSD. Also<br />
MCSD was granted the highest level of<br />
efficiency, following the results of an<br />
assessment panel of depository companies<br />
conducted by JPMorgan-Chase, with a score<br />
of 1.25 points on a scale of 1 to 3 where<br />
depository that closely resemble the<br />
best practice is rated 1, meet some of the<br />
requirements but not fully meet the preferred<br />
practice rated 2 and finally depositories that<br />
are deficient are rated 3.<br />
The assessment revealed that MCSD has<br />
abided by all the rules and high standards<br />
set by the SEC in Rule 17f-5 which have<br />
been developed to be more strict as<br />
compared to Rule 17f-7 in order to secure<br />
American foreign investments. A secure,<br />
stable and encouraging investment<br />
environment is the goal of MCSD.<br />
Role of the Depository<br />
MCSD is the sole Egyptian CSD providing<br />
clearing and settlement services to the Cairo<br />
and Alexandria Stock Exchanges (CASE).<br />
MCSD operates both the depository and the<br />
clearing house. 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 (CMA). 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 MCSD'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. MCSD’s authorized capital is LE 50<br />
million, issued capital is LE 40 million and<br />
paid capital is LE 18.75 million.<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 MCSD’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+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 />
* Please refer to page 70 for the Egypt country report.<br />
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