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Clearing and Settlement Procedures
The clearing and settlement system means identifying rights and obligations resulting from securities trading, covering the financial positions resulting from these transactions and effecting the relevant discount and addition as required.
Objectives of Settlement and Clearing System:
- Limiting the risks associated with receipt and delivery of securities as well as the cash values for transactions executed in the market through member firms.
- Executing the clearing and settlement transactions and proceed with securities ownership transfer within a specified timeframe:
-(T+0) for member firms licensed from the Financial Regulatory Authority (FRA) for same day trading and for securities eligible to be traded (buy/sell) complying to the provisions of the FRA and EGX.
- T+1 for Egyptian Treasury bonds registered at the Central Registry
- T+2 for securities listed on EGX.
- T+4 for securities not registered at the Central Depository System.
Central Depository
Central Depository activity refers to any activity related to the depository of securities, clearing and settlement of financial positions resulting from trading transactions and the relevant pledge of securities.
Central Registry
Central Registry means any activity related to the bookkeeping of securities ownership and any interests thereon, including:
- Maintaining records of the names of stocks and other securities’ owners and the relevant rights and obligations.
- Distributing financial benefits of securities entitlements deposited with the company, including the principal value, the proceeds, dividends, redemption values, and restructuring payments.
- Publishing information and reports securities issuers disclose or related to these securities.
- Providing services related to the issuance of securities on behalf of the issuer.
- Taking the required action to replace a security upon the restructuring of the issuer.
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