Misr for Clearing, Settlement and Depositories

S.W.I.F.T Service

Introduction:

Within the efforts exerted to develop the Egyptian Capital Market through applying the International standards, M.C.S.D as an accomplishment being a financial company & not a member bank in SWIFT.

Decided it’s time to apply SWIFT services in the securities market , M.C.S.D as a unique company performing the clearing & settlement not only to the whole Egyptian Market but also to the Arab Stock Exchange as well & being a pioneer in its field, M.C.S.D chose SWIFT as a efficient & effective mean to conclude it’s clearing & settlement services.

M.C.S.D took the initiation & bears the cost burden of high participation in SWIFT as a company and then introduced SWIFT to the Egyptian Market through several & frequent seminars in a way to encourage Market participants to take part in SWIFT services.

History

1998	M.C.S.D became S.W.I.F.T member.
1999	M.C.S.D started operation with S.W.I.F.T.
2000	M.C.S.D training courses &ease work.
2001	M.C.S.D replaced entry system by access.
2002	M.C.S.D all financing & investment’s bank transferred by S.W.I.F.T messages.
2003	M.C.S.D responsible for all Settlement Guarantee Fund S.G.F bank transferred by S.W.I.F.T messages.
2004	M.C.S.D started treasury bonds interest’s disbursements by S.W.I.F.T messages.
2005	Started same day trade settlement through S.W.I.F.T system.
	M.C.S.D allows brokers & custodian to become S.W.I.F.T sub-member. M.C.S.D responsible for Egyptian Investor Protection Fund E.I.P.F transfers among different banks by S.W.I.F.T messages.
2006	S.W.I.F.T responsible for M.C.S.D custodians transfers.

Our Mission

        As a mean to facilitate the clearing & settlement procedures in a high quality of confidentiality & low cost manner, MCSD applied SWIFT as follows:

In M.C.S.D dealing room  

       Being the most fast & lowest cost, SWIFT messages were the best in achieving profits by sending  SWIFT messages to the highest given interest bank  to benefit from the changes in interest rates as  fast as possible to feed MCSD different bank’s accounts.

In the settlement process

         The whole cash side of the settlement is done by SWIFT where all settling brokers are obliged to deposit their settlement cash worth in one of the clearing banks upon SWIFT messages instructions send to the central bank of Egypt by M.C.S.D in a timely manner, in addition of Same day trade settlement.

         Central Bank of Egypt debits & credits the clearing banks & primary dealers accounts, as a result of M.C.S.D settlement process.

In cash dividends

Upon request from shareholders, M.C.S.D is authorized to transfer cash coupons worth to the shareholder’s bank accounts in & out Egypt by SWIFT messages.

In Custodians & Foreign Operations Department

M.C.S.D use SWIFT messages in all bank transfers related to Custodians & Foreign Operations Department including subscription for Arab investors

Settlement Guarantee Fund

Responsible for all S.G.F bank transfers among different Egyptian banks by S.W.I.F.T messages.

Egyptian Investor Protection Fund

Responsible for all E.I.P.F bank transfers among different Egyptian banks by S.W.I.F.T messages

In treasury interests

Upon authorization from the central bank of Egypt , M.C.S.D is the only entity allowed to treasury bonds interest disbursement , through SWIFT messages M.C.S.D distribute treasury bonds coupons on payment date & with no fees .

Our Goal:

Our prospective plan is to allow all market participants (Brokerage Firms) to become SWIFT sub members will be entitled to all SWIFT services which they can apply in their daily operations.

To do so, M.C.S.D exerted a great effort to reach a compromise with SWIFT, where they can be entitled to all SWIFT services at the lowest possible cost mostly market participants will use SWIFT category 5 in :

Receiving & sending the buying & selling instructions from & to investors.

2.   Confirming trade’s executions to investors.

3.   Transferring securities portfolios among different custodians.

4.   Applying securities loan with confirming the transaction.

5.   In addition to corporate action notification.

6.   Sending the following statement (holding, transactions, and intra-position            advices)

But they can also use other SWIFT categories in transferring cash among different banks for settlement & dividends purposes, sending statements of accounts to the investors.