The Key Projects That Are Top Of Strategic Concern

The Key Projects That Are Top Of Strategic Concern 1

2 ALGERIA ALGERIE CLEARING SPA

Algerie Clearing Deployed a solution that aligned IT with Business 3 Eager to achieve a simpler and more cost-effective IT environment, AC launched a prospection to upgrade its technology and improve customer interface all this to reach greater efficiency. We have examined many projects to finally decide for Citrix, a based virtualized solution. Algeria CSD signed an agreement with Citrix for deployment of Citrix Xen Desktop. It took the CSD several weeks to complete the project. We conducted a user-acceptance test and all users transitioned from a physical infrastructure to a cloud-based one with zero business interruption. To ensure that the end users were comfortable with the new solution, the bank provided handholding during the initial stages. It also embarked on 'Train the Trainer' program to further support easy adoption.

4 Bahrain Bahrain Bourse - CSD

5 Bahrain Bourse - CSD Abdulla Abdin Director of Central Securities Depository

Achievements & Projects - 2016 6 Establishment of Clearing House. Primary / Secondary Market on Fixed Income (Sukuk, Bonds & T-Bills). Online Principle & Coupon Payments. Implementation of Demat Law. Central Bank as an Authorized Trader to facilitate the fixed income market. Implementation of REITs market. 6

Primary Market Fixed Income (Sukuk, Bonds & T-Bills 7 Central Bank Bahrain Bourse Bank A Bank B Broker A Broker B Investor a Investor b Investor c Investor d Investor e Investor f

8 Egypt Misr for Central Clearing, Depository & Registry - MCDR

MCDR In its striving to promote for a better and effective capital market, MCDR has worked closely with market regulators until it succeeded to pass a new investment decree that requires all the new and currently established companies to be admitted in the central depository ( 60,000 + companies) the main target was to provide more funding opportunities for companies of various types and sizes and bring more liquidity to the capital market 9 parallel to different market developments, MCDR is internally developing its staff skills in order to create more productive working environment Recently; MCDR updated its DVP structure to enable a more real DVP mechanism between brokers and custodians. The new DVP mechanism allows custodians to become a direct settlement members, hence, the settlement can directly take place on custodians settlement accounts - specially for foreign investors - the goal was to remove any fragmentation in the settlement process, add more efficiency to the settlement process, eliminates broker- custodian counterparty risk exposure and reduce transaction cost.

Ghana Central Securities Depository 10

11 RECENT ACCOMPLISHMENTS OF THE CSD IN GHANA. PRESENTED BY MRS. MELVINA AMOAFO DEPUTY CHIEF EXECUTIVE OFFICER, CSD, GHANA @ THE 23 RD AMEDA MEETING HELD IN TANGIER, MORROCO, May 4-6, 2016.

12 RECENT MARKET DEVELOPMENTS ONGOING ACTIVITIES Merger of the two Depositories, Dec., 2014. A single CSD platform, March, 2016. Implementation of a new CSD system- version 7 of the Millennium Clearing, Settlement and Depository (MCSD) of Sri Lanka, a Migration of both fixed income and equity securities member of the London Stock Exchange Group, Settling in Central Bank Money for both fixed income and equity securities, March, 2016. Establishment of Settlement Guarantee Fund for both fixed income and equity securities, March, 2016..1.2.3.4.5 Disclosure framework CPMI-IOSCO Assessment Working with the Central Bank to develop a platform for Intraday Liquidity Management..1 FUTURE DEVELOPMENTS Securities Lending and Borrowing & Collateral Management. Enhance the existing Repo Market.2.1.2 Review of Rules and Procedures, March 2016.6 Data warehousing Trade Repository.3 Establishment of the Ghana Fixed Income Market, 2015..7 Investor Portal.4 Authorisation of securities account opening by the CSD, March 2016..8 Interface of the CSD system with the GSE, March, 2016..9 10. ISO 27001-2013 Certified.

13 Jordan Securities Depository Center

14 Ala Malhas Head of Research & External Relations Section Tangier, May 05 th, 2016

Overview 15 Establishment & Responsibilities Public utility institution established in May 1999 to perform the following functions: Registry: Central registered ownership system Depository: Central depository system Safekeeping: via Book-Entry Authenticated corporate actions Clearing & settlement Transfer of securities ownership

Overview 16 Goals & Objectives Enhance the confidence of investors in securities & enable them to follow-up their investments in securities with ease by establishing a central registry to safe-keep the ownership of securities Reduce risks related to settlement of trading transactions executed through the Market by implementing by-laws, instructions & procedures that are fair, fast & safe

Strategic Project 17 Developing Settlement Cycle (Custodians involvement) SDC plans to allow custodians to settle the trading contracts related to their clients directly through the SDC on a DvP basis. Custodian will receive an electronic notification of client s trades made by brokers. Custodian will accept or reject the trade through the SDC electronic system. Should the custodian agree to settle the trade, the custodian is obliged to settle the trade with the SDC on a DvP basis. Should the custodian reject the trade, the concerned broker is obliged to settle the trade with the SDC. Strict timings for the settlement cycle will apply, with the ability of implementing a late confirmation and late settlement on the purchase trades.

18 Thank you for your Attention Further information available: SDC Website: www.sdc.com.jo SDC Email (Research Department): info@sdc.com.jo

19 Kenya Central Depository and Settlement Corporation limited

CDSC KENYA 20 CDSC is currently undertaking the process of upgrading its core system. The new system will enhance risk mitigation, automate processes and enable introduction of new products and services. CDSC is also planning to offer the following services: Securities Lending & Borrowing. Introduction of E-GEM (Electronic General Meetings). Enhance mobile solution services by enabling investors to access their accounts using their mobile phones. Offer depository & settlement services to unlisted companies.

21 Palestine Palestine Exchange (PEX)

Preparation to launch new services is under process, the new services are: 22 1) The E-IPO service, it is planned that this system will be hosted by banks who will accept primary and secondary subscriptions from investors, the data quality of subscriptions will be online verified from the CDS to ensure that their data attributes is provided in line with the CDS criteria, ultimately this will help attaining data accuracy and save the time and efforts for investors and the issuer.

2) Registry for Unlisted companies, the service will enable the CDS to manage & safekeep the sharebook, and update the ownership of shareholders, this will enhance the reliability of the company towards its shareholders since their holdings of shares are centrally managed and safeguarded by an experienced and authorized CDS. 23

24 Qatar Qatar Central Securities Depository

25 Misnad Al-Misnad Chief Executive Officer AMEDA Meeting: 04 th 06 th May, 2016 Tangier, Morocco

Topics for Discussions 26 Topics for discussions 1 Projects Recently delivered 2 Projects Supporting Market Infrastructure Initiatives 2 Projects Information Technology 4 Any Questions for QCSD

27 Projects at QCSD Recently delivered The vision of QCSD is to provide our services by adapting to best international practices and providing a safe environment that attracts capital In line with our customer centric philosophy, we have recently completed below projects:- Got accredited with ISO 9001:2008 certificate - Quality Management Systems from British Standards Institute (BSI) SMS Services Forwarding sms to customers for all QCSD transactions Email Services Forwarding end of day statements on email

Projects at QCSD Market Infrastructure 28 QCSD believes in supporting and contributing to develop the Qatari Capital market With this in mind, QCSD have contributed with all other market infrastructure stakeholders, to introduce new initiatives in our market:- Introduction of trading of rights issue shares Introduction of Margin Trading Introduction of Exchange Traded Funds (ETF) Signed Memorandum of Understanding with Kuwait Clearing Company for future inter-listing We have arrangement in place with Abu Dhabi Exchange for cross-listing (For 1 equity security)

Projects at QCSD Collateral Management 29 Currently, we use Bank Guarantee (BG) as the only form of collaterals, from our broker and custodian participants We intend to use best market practice for our collateral management In this pursuit, we have undertaken a study to find out the best possible form of collaterals, which will enable us to manage all our risks in an efficient manner

Projects at QCSD IT Projects 30 Replace the existing post trade systems: One of the most critical projects which we intend to achieve is to replace our existing post trade systems with a state of arts solutions on latest technology with a new vendor. Majority of the evaluation task to finalize the solution has been completed Additionally, we intend to introduce the below:- Establish our own dedicated 24*7 call centre Provide most of our current services using the e-services platform Managing the cash dividends part of the corporate action Managing the Shareholders meetings AGM and EGM

Qatar Central Securities Depository 31 Thank you for your attention Visit us on: www.qcsd.com.qa

32 South Africa Strate Central Securities Depository

Distributed Ledger Technologies Extensive investigation into understanding potential future methodologies and technologies 33 Electronic Trading Platform A project initiated by National Treasury focusing on the Primary Dealer environment in the SA market T+3 A project in the SA Market to move Equity settlements from T+5 to T+3 DIS A project to refresh the Bond market settlement system in the South African market New Exchanges A number of parties have recently applied to establish new securities exchanges in the SA market and have approached us to provide CSD services CIS Industry initiative The Collective Investment Scheme (CIS) market in SA is actively seeking improved processing flows, risk management and enhanced governance that a CSD can provide African Linkages Exploring CSD-to-CSD linkages across the African continent

3 am worries! 34 New trends, Market changes, System obsolescence Cyber security Operational reliability in a highly interconnected world System changes / weaknesses in one part of the chain Impacts, or has the potential to impact, all the other Parties in the chain

Tunisia Tunisie Clearing 35

IT Pillar 36 IT Strategy 2016-2018 : Acquisition of a new CSD system (a qualified consultant will be tasked to provide scoping, preparation of tender documents and implementation support services). Implementation of a risk management framework. Establishment of a formal Business Continuity Plan. Renovation of the technical infrastructure (virtualization and outsourcing).

Business Pillar 37 Functioning rules including: Participation agreements ; Securities accounting standards for CSD and bookkeepers. Back-office certified training. Permanent audit committee. Bond market Yield Curve. Contact tunisieclearing@tunisieclearing.com Website : www.tunisieclearing.com

MKK Turkey 38

MKK Turkey: 3 big projects that we have been working this year. 1. e-gem : Electronic General Meeting MKK and Africlear signed an agreement for the modification and implementation of MKK s e-gem system in African markets. 2. e-trade REPOSITORY: Electronic Trade Repository Project Providing data warehouse services for the purposes of monitoring systemic risk and maintaining financial stability of our capital markets and regulatory institutions, First phase reporting will cover over-the-counter derivatives, Second phase will be covering market data as well and establishing connectivity with foreign counterparts, 3. Public Disclosure Platform Upgrading project (PDP 4.0); Distribute up to date, accurate, comparable and analyzable information from a single and reliable source (www.kap.gov.tr). Once completed PDP will be, a more user-friendly web-based independent platform that uses XBRL format, providing multi-language support for sending and distributing notifications and working in full integration with our other systems Create a platform that is end to end integratable with all domestic and international institutions. 39 39

Abu Dhabi Stock Exchange - ADX 40

41 Launch a new platform for SME's listing and trading In order to Promote a culture of entrepreneurship and the participation of Small and Medium Enterprises in UAE, ADX is launching a new market segment for the SME for listing and trading. Enhance the SLB and Short Sell mechanisms Working with the Securities and Commodities Authority to modernize and develop the SLB offerings by creating additional mechanisms for investors in order to increase the liquidity and trading volume.

Work with issuers and service providers to offer Sharia Compliant products Evaluation of Islamic finance market and the size of the products in the country and identify technological infrastructure, human and legislative requirements needed to deliver compliant products with Islamic law to keep pace with the growing demand for these products. 42 Develop the debt market To attract issuers of fixed income instruments such as bonds locally and marketing with brokers and institutional investors in order to make ADX a regional hub for bonds Form a CCP entity. Establish a project team to plan and implement the CCP in ADX with coordination with the regulator and market stakeholders.

43 Zimbabwe CHENGETEDZAI Depository Company limited

Key CDC Milestones 44

Key CDC Milestones 45 Custodian Model adopted as opposed to historical Broker centric model which had existed before the CSD; Why Custodial Model? Protects the assets of investors since custodians pass a rigorous test for fit. Separation of roles: trading role for stockbrokers and Safekeeping and settlement role for custodians Most custodians are units within international banks, and are subjected to international standards for risk management, and this is unmatched by brokers Beneficial Ownership Model CDC has implemented a beneficial ownership model where securities are registered in the names of the actual beneficial owners as opposed to an omnibus model. Investors' assets are segregated from other investors and their CSD Participant.

Key CDC Milestones 46 On-boarding of Securities A total of 63 Zimbabwe Stock Exchange ZSE) listed equities on-boarded on a phased approach An additional two counters have came onboard as new listings after the CSD went live Trades Clearing and Settlement Since going live, CDC has cleared all trades in on-boarded counters All ZSE listed counters cleared since July 2016 when the phased on-boarding was finalised Table shows market values of trades cleared and settled since going live Phase Date No. of Counters One 8 Sep 2014 3 Two 6 Oct 2014 14 Three 3 Nov 2014 10 Four 1 Dec 2014 16 Five 2 Mar 2015 7 Six 6 Apr 2015 1 Seven 15 Apr 2015 1 Eight 3 July 2015 8 New Listing 6 Nov 2015 1 New Listing 15 Jan 2016 1 Total 63 Period Trades Market value ($ million) 2014 688 71.18 2015 7,278 343.62 2016 ** 1,899 85.77 Total Trades ** Year to date 9,865 499.82

Key CDC Milestones- Dematerialisation 47 63 counters on-boarded on to the CSD 35,864 securities deposit transactions processed since going live with a total value of USD1.1 bln Demat ratio of up to 78% with an average of 30% achieved since going live By market value, 41% of ZSE market capitalisation dematerialised as at 31 Mar 2016 Empirically, CSDs have achieved a Demat ratio of just over 10% in the first year 60% 50% 40% 30% 20% 10% 0% Dematerialisation Ratio (%) 57% 26% 17% 50% 30% x 49% <30% CDC DEMAT RATIOS

CSD Outlook - Key CSD Projects 48 Project Comments Penalties Framework 60 day notice given to Participants Penalties to be implemented effective trade date 13 June 2016 Chengetedzai Depository Company Limited (CDC) is available to provide further information Fixed Income Project CDC working with Zimbabwe Stock Exchange (ZSE) on the introduction of a Listed Bonds Market Approval of the Debt Market Rules by the Securities and Exchanges Commission of Zimbabwe (SECZ) still pending Project will also covers Over-the-Counter (OTC) bonds CSD System vendor expected for a demonstration of the system to Participants

CSD Outlook - Key CSD Projects 49 Project Comments Settlement using Central Bank Funds Technical tests with the Reserve Bank of Zimbabwe have been carried out successfully Discussions underway with Participants on collateral arrangements Implementation expected in Q3 2016 DVP Model Migration CDC currently operating on DVP Model 1 Migration to settlement using Central Bank Funds will coincide with migration to DVP Model 2 as the central bank uses multilateral netting

CSD Outlook - Key CSD Projects Project Comments 50 Migration from T+5 to T+3 Discussions are underway with Market Participants to come up with a roadmap for migrating from the current T+5 to a T+3 settlement cycle Investors will be notified once a roadmap has been agreed between the CSD and Participants Implementation of Straight-Through- Processing (STP) CDC looking to implement STP with all Participants to eliminate human intervention and increase efficiencies in the market STP achieved with ZSE in July 2015 with implementation of a web services interface Discussion at bilateral level with Custodians Some Custodians have already automated their reconciliations with the CSD