1. Central Registration Department
September, 2010

2. Agenda Introduction Objectives Current Market Model Investor Services
Issuer Services
Member Services

3. Introduction
Central Registration Department is responsible for Securities safe-keeping, registration, depository and stock transfers.
CRD Received all Listed shareholders companies data on10/8/1998
CRD policy is to Gain investors confidence through applying an efficient control in a secured environment when dealing with investors and all other market members.

4. Objectives Confidentiality of investors and issuers data
Deliver accurate information to QE investors and issuers through several reports and interfaces
Implement Settlement Risk management
Broker activities controlled by a settlement cap
Bank guarantees to cover the shortage in cash settlement.
Trading system and CRD systems, No short selling allow in QE are tightly coupled.
SAS Risk Management system
Run daily settlement process

5. Current Market Model 3
Brokers
A transaction between a buyer and seller is matched and its terms (ie, price, quantity, settlement date) are agreed upon
Computation of the obligations of each the buyer and the seller is done by the trading department.
Brokers execute trades in the market and clear their own obligations on the settlement day
Cash obligations are communicated to the settlement bank (now central bank, before it was Doha bank). The commercial banks hold settlement accounts of the brokers.
Registration department, acting as record-keeper of securities, transfers ownership of the traded securities (depository/registry)
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 1 2 4
Trade
Execution
Clearing
Settlement
Bank (QCB)
Commercial
Banks 5
CSD – Depository / Registry 6
Depository Participants / Custodians

6. Settlement Cycle: T+3 Confirmations by T+1 by intermediaries
Confirmations by T+2 to the settlement bank
Settlement on T+3

7. Current Members Brokers Custodians The Group Qatar Securities Dlala
Dlala Islamic
Islamic Financial Services
International Financial Services
Gulf Investment Group – GIG
HSBC (mainly targeting international investors)

8. Investor Services Account Opening Account Management
Performing Stock/Registry transfers by moving shares between QE Registry account and Trading account for the same investor
Family / Inheritance transfers
Blocking/Unblocking investors due to incomplete information
Printing statement of accounts for investors.
Printing "To whom it may concern" certificates.
Consolidating multiple NIN's for the same Investor.
Pledging / Unpledging shares
Splitting shared NIN's by multiple investors.

9. Account Opening Process
Investor Application Form
Available on the QE website
Supplementary documentation
100 QR fee
NIN registration once application is processed
Trading / Custody account to be opened before commencing trading
Account is ready for next trading session

10. Issuer Services Maintaining shareholder register for the issuers
Providing shareholder register to issuers for AGMs
Implementing individual ownership limits
Implementing foreign ownership limits
Restricting board members from trading in their companies during certain periods (AGM)
Freezing/Unfreezing shares of Founders, Board members, court order, etc (initial listing period)
Corporate Action processing
Registering new shares underwriting to increase capital
Split/Consolidate shares/Bonus/merger
Helping the listed companies in calculating Cash dividends by sending them their latest investors
Changing ownership limits for listed companies according to the corporate event performed Cash dividends are distributed directly by the issuers

11. Corporate Actions Process
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 and wire transfers
The central registry updates the securities account holdings against confirmation received from issuer companies in the event of bonus, rights, IPOs etc

12. Member Services
Defining new brokerage firms at QE and assigning their settlement cap formula
Risk Management
Defining new Custodians at QE
Creating custody account for each client and define it as a central Inventory account
Collecting Bank guarantees from Brokers and reflecting them into their settlement cap
Check if there are any rejected trades available in the system
Sending clearing reports to the Qatar Central Bank for cash settlement between brokers via swift messages
Run Daily Settlement batch job

13. Future Roadmap DVP SWIFT messaging for securities settlement
Buy-in and cash close out
Participation of custodian in cash settlement
Securities Lending and Borrowing
SWIFT messaging for securities settlement
Securities alledgment
Statement of holdings
Corporate actions messages
Non-elective
Elective
Enhancing risk management
VaR based risk model for default fund and settlement caps
Bonds processing

14.
Thank you