Morocco, Egypt to conclude clearing and depository tie-up before year-end

Egypt’s Central Securities Depository (MCDR) plans to complete a link-up move with its Moroccan counterpart, Maroclear before the end of the current year.

Mohamed Abdel-Salam, chairman of the Egyptian depository house, said MCDR is in the final stage of completing the link-up with Maroclear.

“We are likely the link-up deal before the end of this year.” Abdel-Salam said.

MCDR has concluded successful link-ups with several depository houses in the Arab world, notably Dubai Financial Market and Kuwait Clearing Company S. A. K, the top official added.

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.

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.