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Funding T+1 Transactions
 
MCDR has decided to start funding T+1 transactions for brokers, starting from 1st February 2016, as a means to sustain investors’ liquidity. This depends on funding the required payment of purchase transactions implemented by investors on T day, from the moment of holding the shares for sale on T+1 until starting to settle the purchase transaction as the broker pays the required value of purchase transactions.

For example, if an investor buys 100 shares for 1000 EGP on Sunday, the funding process starts on holding the shares for sale on Monday (T+1), where the shares are available for sale.

Example:

· On Sunday: (T) a client buys 100 shares for 1000 EGP

· On Monday: (T+1)

A- 100 Shares are held for sale

B- MCDR funds this transaction on holding the shares by lending the client 1000 EGP through the broker

· On (T+2)

A- Settling the purchase transaction and deducting 1000 EGP

B- Settling the client’s debt

MCDR collects funding fees

· On Wednesday: Settling the selling transaction and returning the sale value to the client through the broker