Misr for Central Cleaning, Depository and Registration (MCDR)
Misr for Central Clearing, Depository and Registry (MCDR) was established according to the provisions of the Capital Market law number #95 of 1992 and was founded by 1- Cairo and Alexandria Stock Exchanges: with 35%, 2- Banks: with 50%,and Brokerage firms: with 15%
MCDR was established 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. The main purpose of establishing the company is to perform the activity of clearing and settlement of transactions that take place on securities on the stock exchange and applying the central tenure system for securities. The company is responsible for completing the transfers of ownership for the transactions of sale and purchase that take place on the stock exchange, and also the transfer of the ownership of securities that is made on the basis of the principle of Delivery Versus Payment (DVP).
Later on the 18th of May, 2000, the Central Depository & Registry Law was issued to regulate MCDR activities, establish the relevant legal framework to help MCDR become a self regulatory organization.
The company (MCDR) is mainly responsible for the following:
• 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.
Read more about: The Financial Regulatory Authority (FRA)