Cairo to finalise clearing and depository tie-up with Abu Dhabi this June

Egypt’s Central Securities Depository (MCDR) is planning to complete a link-up move with its UAE counterpart, Abu Dhabi Securities Market (ADSM) before the end of next July.

Linking with Abu Dhabi Securities is top priority for MCDR following the completion of another linkage deal with Dubai Financial Market, the Egyptian depository house’s chairman, Mohamed Abdel-Salam told Amwal Al Ghad Tuesday.

The anticipated move comes upon the Africa and Middle East Central Depositories Association (AMEDA)’s decree, which stipulated the need for the GCC and North African countries to be linked with Egypt’s MCDR.

Abdel Salam also said through link-up processes with other central securities depository houses, MCDR would attract more investors and will expand the trading base not only for Egyptians but for all Arabs as well.

The Egyptian Central Securities Depository has finalised the tie-up process with its counterparts in Morocco – MAROCLEAR; Bahrain- Bahrain Stock Exchange; Dubai – Dubai Financial Market; and most recently Kuwait; Kuwait Clearing Company S. A. K., Abdel Salam added.

Cairo- headquartered Misr for Central Clearing, Depository and Registry was founded in 1994 and commenced operations in 1996. MCDR shares are distributed among participants of the Egyptian market: custodians own 50 percent stake, 45 percent of shares are owned by brokerage companies, and 5% stake belongs to the Egyptian Exchange (EGX). MCDR is the sole organization authorised to conduct clearing and settlement operations with all types of securities traded on the Egyptian Exchange.