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MCDR Company Profile

Misr for Central Clearing, Depository and Registry (MCDR) was established according to the provisions of the Capital Market law # 95 of 1992 and within the framework of the programs adopted by the Capital Market Authority (CMA) for developing the capital market mechanisms and applying the central depository system. This is done based on the French expertise of Paris stock Exchange and SICOVAM; a world leader in the application of the central depository system.
The Central Depository and Registry Law was issued on the 18th of May, 2000 to regulate MCDR activities, establish the relevant legal framework and add new activities to help MCDR become  a self Regulatory Organization. The activities and structure of the MCDR are regulated by a special law that grants MCDR the authorities required to undertake its functions, perform its duties and develop the services it provides to members according to the best international practices.
• The authorized capital was set at EGP 10 million and the issued capital was set at EGP three million distributed on 30,000 shares; the value of each share is EGP 100.
• The authorized capital was increased to EGP 15 million and the issued capital was also increased to be EGP 15 million distributed on 150,000 shares; the value of each share is EGP 100.
• Another increase was effected on the authorized capital to  make it EGP 50 million and the issued capital is also increased to be EGP 18,750,000 distributed on 187,500 shares; with a par value of EGP 100 for each share.
• The authorized capital was increased once more to be EGP 100 million and the issued capital was also increased to EGP 40 million distributed on 400,000 shares with a par value ofEGP 100 for each share.
• In 2009, MCDR authorized capital was increased to EGP250 million and issued capital increased to EGP 154 million distributed on 1,540,000 shares with EGP100 par value for each share.
• The Cairo and Alexandria Stock Exchanges: 35%
• Banks: 50%
• Brokerage firms: 15%
The Central Depository and Registry  Law and its executive regulations necessitated that the MCDR's  capital be  restructured and distributed  to accommodate all the central depository members,  brokerage firms, custodians and settlement members as shareholders. Therefore, MCDR has increased its authorized capital to be EGP 250 million and the issued capital to EGP 154 million.
New capital structure
• Cairo and Alexandria Stock Exchanges 5%.
• Banks and financial institutions-custodians 50%
• Securities intermediaries 45%
MCDR Objective
The main objective of the MCDR is to apply the central depository system, effect central registry of securities traded in the Egyptian capital market and facilitate securities trading on dematerialized shares. MCDR also aims at undertaking clearing and settlement on securities traded in the capital market and applying the Delivery Versus Payment system.
Central Depository and Registry Goals
• Eliminate risks resulting from executing clearing and settlement transactions between trading parties.
• Speed up securities turnover through ownership transfer within a certain timeline.
• Apply the Delivery Versus Payment system (DVP).
• Eliminate risks associated with loss, damage, forgery, and duplication of physical securities.
• Apply the international standards in trading with the purpose of attracting foreign investors.
• Facilitate the execution of resolutions issued by securities issuers (corporate actions) in a timely and standard manner.
• Establish a database for owners of securities through establishing a central registry system.
• Establish a standard database for securities registered at the Central Depository System (CDS).
The main tasks of MCDR:
• Undertaking clearing and settlement transactions for securities traded on the stock market and the other related services.
• Applying the Central Depository System in Egypt.
• Establishing the central registry system.
• Executing corporate actions on behalf of issuers.
• Executing pledging operations on the securities registered at the Central Depository System.
• Managing a fund to guarantee settlement of financial and securities transactions.
• Managing a securities lending fund.
• Other supporting  services
• Act as an interface for Arab and Foreign intermediaries in Egypt.
• Act as a custodian for some financial institutions.
• Train employees in the market on the newly introduced systems.
MCDR members
• Securities brokerage firms licensed by the EFSA.
• Banks authorized by the Egyptian Financial Supervisory Authority – EFSA to work as custodians.
• Banks and financial institutions authorized to work as securities intermediaries or as custodian or settlement members.
MCDR Participants
• Securities issuers.
• Issuing the Capital Market Authority's decree to establish Misr for Central Clearing, Settlement and Depository (MCSD) with an authorized capital of EGP 10 million and an issued capital of L.E three million distributed on 30,000 shares with a par value of EGP 100 per share.
• MCSD started its activities in the Egyptian Capital Market through applying clearing and settlement system.
• Registering the first issuer (Misr International Bank) at the central depository system.
• The Clearing and Settlement Department has moved from the ground floor of the Stock exchange premises to MCSD’s premises at 1 Sekkat El Fadl Street.
• Registering securities pledge in MCSD’s shareholders records.
• Opening MCSD’s branch in Alexandria.
• Developing the rules and mechanisms of dividend payment for centrally deposited securities in cooperation with some banks.
• Establishing an electronic link between MCSD and the securities bookkeepers through a new system to replace the French system of a separate database for each bookkeeper. The new system includes working on a standard database limiting the access of each party to the data relevant to its clients.
• Decree # 117 of 1999 was issued by the Board of Directors of the Capital Market Authority now Egyptian Financial Supervisory Authority – EFSA to establish a Settlement Guarantee Fund to guarantee timely settlement of transactions effected on securities traded at the stock exchange.
• Starting the actual operation of the Settlement Guarantee Fund.
• Launching the website of the MCSD on the Internet.
• Opening MCSD’s branch in 70 Al Gomhoria Street- Cairo.
• The Central Depository and Registry Law # 93 of 2000 was issued.
• The company's organizational structure was modified to coincide with law 93/2000.
• Increasing the authorized capital to EGP 15 million and the Issued capital to EGP 15 million distributed on 150,000 shares with a par value o f EGP 100/share.
• Issuing the executive regulations of the Central Depository and Registry Law # 93 of 2000.
• Securities balances delivered from bookkeepers to MCSD as a transitional phase until the application of the Custodians’ system as required by Law #93 of 2000.
• Increasing the authorized capital to EGP 50 million and the Issued capital to EGP 18,750  million distributed on 187,500 shares with a par value of EGP 100/share.
• MCSD was assessed as one of the best performing five international central depository companies by JP Morgan chase.
1. Purchasing data storage units with a large storage capacity measured in terabytes.
2. Linking all issuing companies’ members at the Central Depository system to a system that provides access to the relevant shareholders’ records and trading transactions.
• MCSD awarded the gold star award in total quality from BID international, Switzerland.
• Getting a license from the CMA to start the reform process as per the requirements of the Central Depository & Registry Law and undertake restructuring procedures to accommodate all members.
• MCSD started to develop an action plan to establish a specialized call center to provide services to investors wishing to do balance inquiry through a secured system. The call center will also respond to the questions and inquiries directed by shareholders.
• Developing the settlement system to be able to settle trading transactions at four different time frames starting from T+1 to T+4.
• Provide information services to investors on their securities portfolios and trading transactions through different means (internet- electronic mail- registered mail- fax- mobile telephone- voice services).
• Selecting the smart village as the premises of the Arab Stock Exchange and assigning MCSD to undertake clearing and settlement for the transactions executed at the Arab Stock Exchange. Selecting EFG –Hermes as the financial advisor to the Arab Stock Exchange.
• Modification of the Settlement Guarantee Fund rules according to the provisions of article 18 of law # 93 of 2000 as amended by law #143 of 2004.
• Electing the members of the Settlement Guarantee Fund committee according to the new rules.
• A decree issued by the Prime Minister to establish a fund to protect capital market investors from non-commercial risks resulting from the securities intermediaries' activities.
• MCSD delivers securities balances related to clients of the former bookkeeping companies to banks licensed by the CMA as custodians.
• Transfer of the (ISIN Code) from the CMA to MCSD to use this code locally and internationally. This will help increase the overseas investors in the Egyptian capital market as it enables them to get information about the Egyptian securities through the international code assigned according to the international coding standards.
• Linking the stock exchange trading system to the clearing and settlement system of MCSD, custodians and securities intermediaries.
• Establishing AMEDA (Africa and the Middle East Central Depositories Association).
• Selecting Egypt as the President of AMEDA and Jordan as the Vice President.
• Developing the electronic programs at all securities intermediaries so that they can print all the required reports directly from their premises.
• Approving the new articles of association from the extraordinary general assembly of MCSD and the CMA and publishing same at the official gazette.
• Increase the MCSD’s issued capital from EGP 18,750 million to EGP 40 million.
• Completing the design of the automated trading system at the Arab Stock Exchange.
• Designing the Margin trading automated programs.
• Designing the document and automated clearing and settlement system at the Arab Stock Exchange.
• Designing the automated system and rules of the Same Day Trading.
• Modifying the name of MCSD to be MCDR (Misr for Central Clearing, Depository and Registry.
• Reformation of the MCDR’s Board of Directors according to the provisions of the new articles of association.
• Electing Mr. Mohamed Suliman Abdel Salam as  MCDR Chairman and Managing Director
• Appointing Dr. Tarek Ezzat Abdel Bary as a professional member at MCDR Board of Directors and assigning him to be a second Managing Director.
• MCDR is licensed to undertake the Central Registry activity according to the new concept included into law 93 of 2000 and its executive regulations.
• Launching and operating the "registered owner and beneficiary owner' system as well as organizing training courses for companies authorized to practice such activity.
• Launching "Short Sell" and" Lending and borrowing" systems.
• In a ceremony held in Frankfurt – Germany on 27th February, 2006, MCDR was awarded the Arch of Europe for Quality and Technology from the BID an international assessment institution. The award was received by Mr. Mohamed Abdel Salam - Chairman and Managing Director.
• Launching and operating systems and central PCs concerning the E-signature project.
• Developing MCDR's Web site on the internet from ASP to GSP.
• Accelerating data transfer (1 GB\second) between MCDR's two branches at El Gomhoria St. and Talaat Harb in Cairo. 

• Operating the auto system of the "Omnibus Account" and giving necessary training courses for intermediaries authorized from the CMA to practice that activity.
• Ciphering Data on MCDR's internal information network (Intranet).
• Concluding automated and documentary systems which are necessary for operating the Investor Protection Fund (IPF).
• Signing a cooperation agreement between the Libyan Capital Market and the Egyptian Capital Market represented in MCDR in order to establish an integrated Libyan capital market including activities of the CMA, stock exchange and central depository.
• Studying the establishment of an Information Technology company to introduce services for financial institutions and brokerage firms in the field of IT services.
• MCDR was granted license no. (1) to practice the activity of E-signature including the issuance of E-signature cards and electronic authentication certificates.
• Linking clearing banks with the Depository automatically, thus, allowing MCDR to be aware of cash and settlement accounts balances of brokerage firms registered by banks.
• MCDR in cooperation with intermediaries operates "FIX" system in order to block securities for selling.
• MCDR participates in "Borsa Step x Step" annual conference organized by the stock exchange.
• Re-evaluating MCDR's risks by Thomas Murray where the company's risk rate reduces from level (B) to level (A-)
• Establishing a private website of AMEDA on the Internet including; the purpose of establishment, targets, information about each member and the way of participation (www.ameda.org.eg).
• Establishing the “Nile IT” company, that is specialized in developing systems designed to serve the Egyptian Capital Market and other financial organizations.
• Participating in the first annual forum for the capital markets under the title of “The integration of Arab Capital Markets- Scopes and Challenges “in Muscat (Amman).
• In the Ninth Conference for International Depository Companies (CSD9) held in the Korean capital proposed establishing an international organization that comprises all of the Depository and Clearing worldwide. Such an organization is to suggest the standards, rules and regulations of Clearing and Central Depository around the world. Steps are already taken to establish this organization.
• Completing the systems of the Lending and Borrowing to be sold for the concerned parties.
• Raising the level of assessment of MCDR from A- to A according to the assessment of Thomas Murray Institute, this was the result of the decrease in settlement risk.
• The company was awarded the international Diamond Star for IT Quality from BID international institute, as a reward for its efforts in committing to the international standards in delivering Quality in its service.
• Working on the Administrative building of the company in Al Qahera El Gadida.
• Creating an account for the company- securities and cash accounts- at Clearstream (the international institute for securities central depository.
• Preparing the Disaster Recovery - DR alternative site located at 4 Talaat Harb Street
• Testing the Egyptian market operation at the alternative site of MCDR where all employees, brokerage firms and custodians are connected to the servers of MCDR without any trouble. This was repeated thrice during that year.
• Connecting the Libyan market with MCDR to facilitate technical support and maintenance from MCDR's premises in Cairo.
• Inaugurating Heliopolis Branch supplied with required equipments and networks
• The Minister of Investment approved service fees, introduced by MCDR through issuing Law no. 129 for the year 2008
• MCDR obtained a world evaluation rate (A) from Thomas Murray (a world specialized institution in studying and evaluating market risks)
• Accredited the ISO/IEC 27001:2005 for Information Security Management System – ISMS audited and certified by BSI
• MCDR hosted the first Educational Forum for Africa and Middle East Central Depositories Association (AMEDA 1st ALF) in Alexandria from 27-29 April with 100 participants from 21 countries.
• EFSA granted MCDR the license to practice the role of depository banks
• Launching the system of Depository Banks
• Thomas Murray granted MCDR (A+) in the overall risk assessments
• Holding a workshop introducing Linkup Markets Group - LUMG to the Egyptian capital market as a preliminary step of joining Linkup Markets group
• Practicing the role of depository through the registration of the first Egyptian depository receipts in the Egyptian market.
• Testing the auto systems of the work flow of the Exchange Traded Funds - ETFs
• Issuers are able to get their shareholders' list directly from their headquarters through the internet.