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Www.qe.com.qa Qatar Exchange Misnad Al-Misnad CRD Director April 2012 www.qe.com.qa.

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Presentation on theme: "Www.qe.com.qa Qatar Exchange Misnad Al-Misnad CRD Director April 2012 www.qe.com.qa."— Presentation transcript:

1 Qatar Exchange Misnad Al-Misnad CRD Director April 2012

2 Qatar: a snapshot Population % annual growth to reach 1.7 million Oil & gas 3 Proven reserves of 85 years at current production levels Largest supplier of LNG with 14.43% of world reserves (Note: LNG production capacity reached 77 million tons by Dec 2010) Foreign affairs Qatar is member of the GCC, UN, OPEC, WTO, IMF Host of FIFA World Cup

3 QE History First day of trading of securities at Doha Securities Market (DSM) Introduction of the Central Registration System Investors were able to sell their purchased shares on the next day following their purchase (T+1) 2001 Start of electronic trading project to replace manual trading systems Investors able to sell their purchased shares on the same day; approval of a new market index 2005 Non- Qataris permitted to invest in up to 25% of the shares offered for trading Became correspondent of World Federation of Exchanges (WFE) Signed strategic partnership agreement with NYSE Euronext to transform Qatar Exchange into world-class market launched NYSE Euronext Universal Trading Platform April 2011 Implementation of DVP Connectivity December 2011 T-Bill market

4 QIA - QE - NYSE Euronext partnership 80% shareholding of QE through Qatar Holdings 20% shareholding of QE 4 In June, 2009 QIA and NYSE Euronext formed a strategic partnership agreement – Qatar Exchange. The Exchange is part of a comprehensive national strategy that aims to establish Qatar as a world-class international market and reinforce the Countrys position as regional financial centre by introducing new trading products, technology and international investors and issuers to Doha. Qatar Exchange is regulated by the Qatar Financial Markets Authority

5 Develop a successful regional and international exchange with strong domestic roots Offer diversified range of investment and trading opportunities for investors and members Provide access to domestic and international investors for listed companies from Qatar and abroad Competitive Advantages Strength of the economy Support and commitment from State of Qatar to reform financial & regulatory system Partnership with NYSE Euronext 5 QE Strategy

6 Broaden membership base Local Bank DMA Lower barriers to entry Best trading environment UTP Liquidity providers Lending & borrowing CCP New trading opportunities Efficient post trade system Companies disclosure and IPOs meet the international standard Corporate actions Indices Cash market: ETFs & bonds MSCI Education & Training Trading hours QE Strategy 6

7 QE: a snapshot Investors Foreign institutions account for 23% of the annual trading turnover Qatari institutions account for 29% of the annual trading turnover Over 1200 foreign institutions and funds investing in QE stocks directly Growth Over 200% growth in the market cap Over 270% growth in number of annual transactions QE has been the best performing market in the MENA region for two consecutive years (2010 and 2011) 7

8 Market Capitalization QE Investors Demographics: a snapshot – Annual Turnover

9 QE today 42 listed companies and seven sectors Total market cap: over $120 billion QE Index covers 20 companies Current Members ( Market Share by trading Value – 2011) SWIFT in place between QE, custodians and QCB UTP successfully implemented – Sept 2010 QE is member of the, AMEDA, IOSCO, Arab Exchange Union, WFE 9

10 The QE Central Registry Department (CRD) Fully integrated within QE 25 Staff Nasdaq-OMX Equator technology 3 Custodians: HSBC, Qatar National Bank, Standard Chartered Dual listing with ADSM(QTEL) GDR 10

11 The CRDs Missions Investors Account Openings Daily Clearing & Settlement Procedure Cash-settlement Process with the QCB Exempt (off-market) Transfers Processing of Pledges and Court Orders Monitoring & Managing of the Brokers Settlement Cap Corporate Actions Monitoring the Foreign & Single Ownership Limits DvP & Fails Management 11

12 Corporate Actions Management The corporate action season is normally Feb-Apr and Jul-Aug Market has witnessed dividends, bonus issues, rights issue, splits and mergers Record dates are announced and all trades are settled prior to the record date Payment date is announced subsequent to ratification of dividend in the AGM/Board meeting All trading is suspended on AGM date - Resumed AGM + 1 for dividends and rights issue. - Resumed AGM + 2 for bonus issues and splits. Dividends are distributed by the companies through cheques,wire transfers and (DDP) new initiative by QE The CRD updates the securities account holdings against confirmation received from issuer companies in the event of bonus, rights, IPOs etc… 12

13 Trade Execution Clearing CSD – Depository / Registry Current Settlement Model (BIS Model II) Settlement Cycle T+3 Settlement Bank (QCB) Depository Participants / Custodians 1.A transaction between a buyer and seller is matched and its terms (ie, price, quantity, settlement date) are agreed upon 2.Computation of the obligations of each the buyer and the seller is done by the CRD. 3.Cash obligations are communicated to the settlement bank (the central bank). The commercial banks hold settlement accounts of the brokers. 4.Registration department, acting as record-keeper of securities, transfers ownership of the traded securities (depository/registry) 5.Depository Participants or Custodians, acting as safe-keeper of assets, and reports positions. Can participate in settlement process arranging transfer of securities and cash for the settlement process Commercial Banks 13

14 The CRD in Numbers (2011) 9,371 Exempt Transfers 1,540 Pledges 3,694 New Accounts opened 197,287 Account issued statements 14

15 2012 so far & still to come Successful DvP Implementation Buyers Compensation Enhancement New Custodians Securities Lending Program VaR-based Risk Management SWIFT Developments 15

16 THANK YOU


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