Egypt’s Central Clearing, Depository, and Registry House (MCDR) is ready to handle the settlement process for the country’s anticipated futures and commodities exchange, its chairman Mohamed Abdel-Salam said Wednesday.
MCDR clearly has the technological know-how to be able to absorb the demands of a commodities exchange, Abdel-Salam added. It has the ability and capacity to absorb any clearing and depository services required by a commodities exchange, in particular with respect to the trading of cotton, cement, and orange.
MCDR undertakes efficient settlement in line with international standards as they are able to process same day gross settlement, he added.
Egypt announced plans to set up a global commodities centre back in 2014 but gave few details at the time. News of the initiative first broke in late 2014, when the government announced it intended to turn Egypt into a trade hub. It talked of processing and re-exporting up to 65 million tonnes of wheat, soybeans, sugar and other commodities via a new port to be built on the Mediterranean, as well as creating the Middle East’s first commodities mercantile exchange.
In November 2015, Egypt signed cooperation protocol with Jordan-based Sigma Investments) to establish first ever electronic Egyptian Commodities Exchange.