Egypt halts clearing, depository tie-up with Qatar over rift: official

Egypt’s Central Securities Depository House (MCDR) has suspended its link-up operations with Qatar’s Central Securities Depository (QCSD), chairman Mohamed Abdel-Salam confirmed Sunday.

A week earlier, sources in the MCDR told Amwal Al Ghad that the Egyptian Depository House had halted link-up operations with Qatar’s QCSD in response to the ongoing diplomatic rift between the two countries.

The UAE, Saudi Arabia, Egypt, and Bahrain announced in June cutting diplomatic and transport links with Qatar, accusing it of supporting terrorism and destabilisng the region. Qatar, which shares its only land border with Saudi Arabia, has rejected the accusations, calling them “unjustified” and “baseless.” Yemen and the Maldives also cut ties with Qatar.

All means of cooperation and link-up transactions between MCDR and QCSD were stalled until new developments are unveiled regarding the recent diplomatic rift, Abdel-Salam told Amwal Al Ghad on Sunday.

MCDR has recently completed link-up process with several securities depository houses in the Middle East region, notably in Dubai and Morocco, the Egyptian official said.

MCDR’s tie-up process with its counterparts in the region comes upon the Africa and Middle East Central Depositories Association (AMEDA)’s decree that stipulates the need for the GCC and North African countries to be linked.

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.

Founded in 2014, Qatar Central Securities Depository (QCSD) is a service providing company, licenced by Qatar Financial Market Authority (QFMA) engaging in providing safekeeping, clearing, and settlement of securities and other financial instruments listed on the Qatar Exchange.