FAQs

• The Egyptian Central Securities Depository (ECSD) is the government's arm that is responsible for the depository, clearing, and settlement of government debt Instruments.

• It was established in 2021 as an Egyptian joint-stock company under the provisions of Capital Market Law No. 95 for the year 1992, and Central Depository & Registry Law No. 143 for the year 2020, amending Law No. 93 for year 2000.

• ECSD has an authorized capital of EGP 3 billion, issued & paid-up capital of EGP 1 billion , with the following shareholding structure:

• Central Bank of Egypt (CBE): 70%

• Ministry of Finance (MoF): 30%

• ECSD is licensed by the Financial Regulatory Authority (FRA).

• Board of Directors: 

• Mr. Rami Aboulnaga, Non-Executive Chairman, representing the CBE.

• Mr. Yasser Zaazaa, Managing Director and CEO, representing the CBE.

• Dr. Zeyad Bahaa ElDin, Non-Executive Board Member, representing the CBE. 

• Ms. Zakeya Ibrahim, Non-Executive Board Member, representing the CBE.

• Mr. Ehab Nasr, Non-Executive Board Member, representing the CBE.

• Ms. Nevine Mansour, Non-Executive Board Member, representing the MoF.

• Ms. Mae Adel, Non-Executive Board Member, representing the MoF.

• Mr. Mohamed Youssef, Independent Board Member.

• Manage the depository, clearing, and settlements related to government debt instruments through a unified legal entity, in line with international best practices. 

• Process daily operations, including settlements of the secondary market transactions, Corporate Action (CA) events, as well as handling pledges and freezes on the back of legal and administrative seizure of government debt instruments, which include, but are not limited to, government bonds (G-Bonds) and treasury bills (T-Bills).

• Securities settlements and corporate action payments take place at the end of the beneficiary level using the Unified Identification Code (UIC). 

• Calculate and collect the withholding taxes on behalf of the Egyptian Tax Authority (ETA), according to the published decrees on this matter.

• Act as a Central Securities Depository (CSD) of government debt instruments for the Egyptian market.

• Serve as a clearing and settlement house for all secondary market related transactions (Delivery Versus Payment “DVP” with No-Change of Beneficial Owner “NCBO”, and Free of Payment “FoP” portfolio transfers).

• Process corporate actions (Interest and redemptions) on behalf of the MoF. 

• Function as a central tax agent by collecting the tax amount on the back of secondary market transactions, interest payments, and redemption proceeds, while crediting the tax amount to the ETA. This includes utilizing a pro-rata tax methodology for withholding tax and calculating capital gains tax without crediting it.

• Collect trading fees for the Egyptian Exchange (EGX) and the FRA.

• Perform pledging and de-pledging operations on government debt instruments registered in the CSD system, where the debtor is the pledgor and the creditor (typically a bank) is the pledgee.

• Execute freezes based on legal and administrative seizure decisions, etc., as well as enabling custodians to freeze G-Bonds and/or T-Bills, utilizing various types of freezing. 

• Collect the relevant ECSD fees and charges from custodians, in accordance with the approved fee structure.

• Support the implementation of monetary policy and government debt management.

• Encourage investment interest from both local and foreign investors, enhancing liquidity in the market.

• Implement system developments to meet international standards and International Central Securities Depositories (ICSDs) requirements. 

• Promote the introduction of new government debt instruments.  

• Calculate and deduct relevant taxes, including Withholding Tax (WHT) and calculating Capital Gains Tax (CGT). 

• Elevate the market by utilizing SWIFT messages.

• Offer real-time depository, clearing and settlement processes.

• Apply a true DVP model.

• Provide comprehensive reporting service for all settlement activities, as well as corporate action events.

• Fixed Rate Bond and Sovereign Sukuk: A long-term debt instrument that pays a fixed coupon rate during the bond’s life cycle at regular intervals (annually or semi-annually). The bond's principal is paid on its maturity date.  

• Zero Coupon Bond and Sovereign Sukuk: A short-term debt instrument that does not accrue interest. Instead, it is sold at a discounted rate and provides profit at maturity when the bond is redeemed for its full face value. 

• Floating Rate Note (FRN): A long-term debt instrument with a variable interest rate that pays interest at regular intervals (annually, semi-annually, or quarterly). The interest rate is calculated based on a specific benchmark (floating rate), along with a determined spread, which remains fixed throughout the bond’s life cycle. The floating rate is “calculated/adjusted“ within the system “prior to/during” each coupon period, while the principal is paid at the bond’s maturity date. 

Benchmarks can include options such as the Volume-Weighted Average Price (VWAP), corridor-linked benchmarks, or CONIA).

• T-Bills: A short-term debt instruments issued by the CBE on behalf of the MoF, with maturities of 3, 6, 9, and 12 months. It is a highly liquid instrument that can be traded in the secondary market, with a minimum amount of EGP 25,000 and its multiples.

• The primary auction takes place at the CBE, with positions allocated according to the winning list managed by the CBE’s operations team.

• Securities become available for trading on the EGX’s Electronic Trading Platform (ETP).

• Primary and non-primary dealers execute deals on the EGX’s ETP.

• Trade settlement instructions are transmitted from the EGX to the ECSD system via SWIFT’s “MT5XX Series”.

• Straight-Through Processing (STP) facilitates the matching and settlement of securities on the CSD system.    

• A registration number consists of a combination of the member code of a custodian (A four-letter abbreviation of the custodian’s name) and the unified code of the client, serving as the securities account number on the CSD system. This registration number is automatically created when a custodian links an investor under its custody to the system.

• A market agreement is a predefined configuration on the CSD system that includes the matching criteria and the distinctive features that govern certain trades. Noteworthy, multiple market agreements exist within the CSD system, each tailored for different types of trading activities, including T-Bills DVP trading, G-Bonds DVP trading, REPO Transactions, and NCBO portfolio transfers.

• Any licensed custodian by the FRA can request to become a member of ECSD. To do so, they must submit the required onboarding documentation and sign the membership contract.

• Each custodian will be granted two free users. Additional users can be obtained for an extra fees.

• All actions performed on the CSD system require validation by two authorized individuals, ensuring compliance with the "four eyes" principle.

The actions available to custodians on CSD system include the following:

·        Access to view their own trades and corporate actions (CA) payments in details.

·        Selection of tranches from the previously purchased inventory for trade settlements.

·        Confirmation on trades to finalize settlements.

·        Freeze of positions for the custodians’ clients due to specified legal reasons.

·        Register new investors and/or deactivate existing investors under their custody.

·        Access to extract reports for their own use or for their underlying clients.

·        Amend and update the cash limit for the indirect participants by the settlement banks.

• The trade settlement cycle in the secondary market ranges from T+0 until T+5.

• DVP-model 1 gross basis, with real-time settlement, considering market fees and taxes.

• ECSD receives settlement instructions MT54X directly from the EGX via SWIFT messages.

• Custodians are not required to send SWIFT instructions to ECSD on the back of trade executions on the EGX’s ETP, as automated messages will be generated by the EGX directly to the CSD system once the trades are bilaterally executed on the ETP. However, for NCBO, custodians will be required to send SWIFT settlement instructions (MT540/542) accordingly. 

• No, on the contractual settlement date, the system will trigger the settlement process upon matched trade affirmation by the custodian. The system settles the trades using DVP Model 1 (trade-by-trade order).

• The settlement deadline is the end of the settlement window, which occurs on the contractual settlement date at 3:30 PM Cairo time.

On the trade date:

• Instructions will be sent to ECSD via SWIFT messaging (MT54X).

• Upon matching, ECSD will send SWIFT messages (MT548s) with status updates to the EGX and the involved custodians.

• Custodians will have the opportunity to select the tranche from which they need to execute the sell trade for tax calculation purposes until the end of the trade settlement window. If no selection is made prior to affirming the trade, the system will automatically apply “Last In, First Out” (LIFO) inventory selection.

• Affirmation will be availed to custodians to review and confirm the processing of the trade instruction until the end of the trade settlement window on the contractual settlement date.

On the contractual settlement date:

• ECSD will verify the sufficiency of the securities balance on the seller’s side.

• ECSD will send cash settlement SWIFT messages to the RTGS system at the CBE to settle the cash side, considering the fees and taxes of the EGX, FRA, ECSD, and the ETA.

• Simultaneously with the cash settlement, ECSD will settle the securities on both sides.

• ECSD will send settlement confirmation messages to the EGX and custodians (MT54X).

• Fees are applied according to the fees schedule approved by the FRA and communicated to all custodians. ECSD settlement fees is a fixed amount of EGP 50 per trade leg, noting that ECSD’s commission is evaluated on a regular basis.

• Market charges will be deducted automatically from the settlement proceeds.

• ECSD will deduct the tax amount from the settlement proceeds.

• Tax amounts and calculations will be available to custodians through extracting the reports from the CSD system.

On the trade date:

• The receiving custodian must verify that the unified code is linked with its custody to be able to receive the portfolio of the investor.

• Custodians should send FoP SWIFT settlement instructions (MT540 - MT542), including the same unified code of an investor.

• Once both instructions are received by the CSD system, they will be automatically matched, and relevant status updates will be sent to the custodians via (MT548s) swift messages.

On the contractual settlement date:

• ECSD will verify the sufficiency of the securities balance on the seller’s side custodian.

• If the balance is sufficient, ECSD will proceed to settle the securities on both sides.

• ECSD will send settlement confirmation messages to the relevant custodians (MT544/546).

• No market fees apply to FoP portfolio transfers, aside from the standard SWIFT fees. 

• For NCBO trades, the purchased tranches will be transferred with the exact details to the buyer custodian. The buyer can view the transferred tranches with their reference and the original purchase details.

• Upon signing the direct payment forms required by the non-custodian banks and their custodians, a direct payment setup will be configured on the CSD system. This setup enables cash settlement for the secondary market transactions and corporate action payments to occur directly from their own RTGS cash account.

• If the direct payment forms are not completed by the non-custodian banks and their custodian, the standard setup will apply. In this case, all cash obligations will take place on the custodian’s relevant RTGS cash account.

• When a contract is established between an investor and a certain custodian, the custodian must link the contracted investor’s unified code under their custody on the CSD system. This process enables the custodian to process trade settlements and CA payments without delays.

• When a custodian needs to delink a specific investor under their custody due to the termination of their relation, the investor must either transfer its portfolio to another custodian or sell the portfolio in the secondary market. This action allows the custodian to deactivate the investor on the CSD system. Noteworthy, the deactivation process cannot take place if there is an outstanding balance in the investor’s account.

• A cash limit is an available option for custodian companies, as they do not maintain an RTGS account operated by the CBE. Instead, they appoint a settlement bank, according to a bilateral agreement, to act as their cash agent for both secondary market settlements and corporate actions payments for the custodian companies and their clients.

• The cash settlement’s limit is defined by the appointed settlement banks favoring the custodian companies, limiting their exposure to paying additional fees and abiding by a specific pre-agreed amount between the two parties. This limit accumulates throughout the day and is reset automatically on daily basis. The CSD system will not settle any trades beyond the defined limit unless the limit is increased by the settlement bank or by sale proceeds, increasing the headroom for the custodian companies.

• Trade cancellations can be initiated on the EGX from T+0 until the contractual settlement date during the EGX’s trading window. The cancellation window will remain open until 2:50 PM, following the end of the normal daily trading session. 

• Both counterparties should submit cancellation requests bilaterally to the EGX, following the current market practice. The EGX will then send automated cancellation instructions to the CSD system to cancel the trades accordingly.

• If a custodian fails to cancel the trade during the EGX’s trading window, the trade will ultimately fail by the end of the day on the CSD system, and a fail settlement fee will be applied accordingly. 

• Custodians can cancel unilaterally an NCBO-FoP trade as long as the instruction’s status is registered as unmatched on the CSD system, even on the settlement date.

• Custodians must link the SEME reference of the original SWIFT instruction to the cancellation instruction. For further details, please refer to the SWIFT guide previously shared with custodians.

• In the case of amending matched instructions, any amendments should be made bilaterally by canceling the originally received instructions from both custodians, and replacing them with the new SWIFT instructions prior to the settlement date.

• A pledge is as a contractual agreement between an investor (pledgor) and a bank (pledgee), outlining the provision of funds in exchange for securities according to mutually established terms. Within this contractual framework, specific conditions govern the allocation of rights, including entitlements to receive interests and redemptions. 

• In order for ECSD to accept the pledge case, a set of documents must be provided for each pledge request:

• A cover letter from the bank to ECSD, requesting to pledge the subjected security.

• A true copy of a valid pledge contract with live stamps (Bank stamp/ signature verification stamp for external use), including a clause that identifies who will benefit from the interest payments and redemption proceeds.

•  A foreclosure letter signed by the client and stamped with the “signature verification stamp for external use”.

• A pledge request stamped and signed by the bank’s authorized signatories.

In the event that the pledgor pays off the related debt favor of the pledgee bank and wishes to release the pledge, they need to submit the following documents:

• A cover letter from the bank to ECSD, requesting to release of the pledge.

• A pledge release request stamped and signed by the bank’s authorized signatories.

In the event that the documents are validated by ECSD, the pledge is processed on CSD system, followed by a confirmation letter issued by the company in favor of the pledgee bank.

• For any legal compliance and in the event of default by the pledgor, the pledgee should have the authority to sell the pledged securities, in accordance with Law No. 93 of the year 2000 and its related amendments regarding the foreclosure process. This provision must be clearly stated in the pledged contract and included in the foreclosure letter signed by the pledgor, which is provided with the pledge case documents

• All pledged documents will be automatically released and de-allocated at the maturity date, whether to the pledgor or pledgee, in accordance with the terms specified in the pledge contract.

• ECSD executes the freeze upon receiving a freeze request based on a legal action, administrative, or regulatory decision. 

• Custodians have the authority to freeze positions on the CSD system using a specific list of freeze reasons available on the CSD system. They can also unfreeze those positions for the same freeze reasons, except for the freeze codes related to the facilities granted from the CBE).

• The unfreezing action, including those related to legal purposes and the -freeze codes related to the facilities granted from the CBE, will be processed by the ECSD’s operations team upon receiving instructions from the initiator. 

• A freeze process will not impact the entitlement calculations for government debt instruments’ interest and redemption events.

• All freeze reasons prevent the completion of the settlement on the frozen amount. 

• Regarding the CA market services’ payments, only legal reasons could suppress the payment. For other reasons, freezing a position will not prevent the CA payments from taking effect.

• The EGX fully manages the dormancy process for UIC according to their procedures. To resume trading, a direct request must be submitted to the EGX to re-activate the dormant UIC.

• CA payments will be made normally, even if the investor account “UIC” becomes dormant or inactive.

• Custodians should not process any FoP portfolio transfers on dormant accounts. It is the custodian’s responsibility to ensure compliance with this process, with no responsibility on ECSD’s side in case of any difficulties occurred in transferring the investor’s balances between custodians, using relevant SWIFT messages.

• Trade affirmation is a mandatory action available for custodians by default, allowing them to review and confirm trade details before processing.

• Affirmation is available until the end of the settlement window on the settlement date.

• The trade will eventually fail by the end of the settlement window on the contractual settlement date, and a fail settlement fee will be applied to the defaulting custodian. Market fees (EGX and FRA) will be applied on all failed trades.

• The pre-blocking mechanism was removed to facilitate trade execution for the T+0 settlement cycle and turnaround trades (back-to-back trades) with the same contractual settlement date. Moreover, implementing the affirmation process provides the custodians with the opportunity to review and confirm the trade details before the settlement.

• Once a trade is recorded on the CSD system and after the automated matching process, custodians can select which buy tranche to execute for the sell trade. This selection triggers tax calculations accordingly.

• The sold face value could be split and selected from several tranches.

• Custodians can view all the holding tranches for their clients with their reference and purchase date.

• Custodians are able to select tranches until the end of the settlement window on the settlement date, provided that affirmation is yet to be performed.

• If no tranches was selected for a certain trade and affirmation was done, the trade will be settled based on the LIFO methodology.

• An inventory selection can be deleted and changed before trade affirmation on the settlement date, or if a trade is affirmed, it can be changed until settlement date (T-1).

• On the settlement date, trade statuses could include “insufficient  stock, pending cash limit for settlement, and/or pending affirmation”.

• At the end of the settlement date, if the trade status has not changed, the trade will automatically expire.

• Relevant MT548s will be sent to EGX and relevant custodians, and fail settlement fees will be applied to the defaulting custodian.

• The fail settlement fee is 0.1 bps per failing trade, calculated from the settlement value of the normal trade and the face value of the REPO trade.

• FRA and EGX fees will be charged as usual for failing trades.

• The fail settlement fee will be claimed on a monthly basis from the defaulting custodian, with a breakdown provided to them.

• Short selling is not permitted by ECSD. If a trade has a short position on the settlement date, an MT548 status message will be released to inform the custodian of the “pending stock” status of the trade. If the issue is not resolved by the end of settlement date, the trade will eventually fail, and fail settlement fees will be applied to the defaulting custodian.

• The custodian will receive MT548s, updating the status of their trades, as well as MT544/5/6/7 settlement confirmations for DVP and FoP trades. 

• For CA payments, custodians shall receive the following SWIFT messages:

• MT564s (CA notification): This SWIFT message is related to CA events for both government debt instruments’ interest rate and redemption on the event pay date.

• MT566s (CA confirmation):  This SWIFT message is related to the CA payment confirmation for both government debt instruments’ interest and redemption. 

• The CA events related to the Egyptian government debt instruments include interest payments and redemption events. It’s important to note that the Egyptian market operates on an end beneficial owner level. Therefore, G-Bonds, T-Bills and Sovereign Sukuk trading and CA proceeds occur at an end beneficial level.

• MoF credits ECSD’s cash account with the full coupon/redemption amount on a gross basis on the event pay date.

• ECSD’s CA team initiates a reconciliation process against the MoF letter, considering multiple factors such as face value and gross amount, while also sending the MT566 payment confirmations.

• WHT amounts are deducted at source from the coupon/redemption payments.   

• The net amounts are then wired to the cash settlement bank’s RTGS cash accounts.

• ECSD announces CA events via SWIFT (MT564) 21 days prior to the event pay date.

• ECSD sends entitlement notification messages via SWIFT (MT564-REPE).

• Interests/redemptions claim requests are no longer required.

• Automated payments for interests/redemptions to custodians via RTGS system.

• ECSD sends payment confirmation messages via SWIFT (MT566).

• Enhanced liquidity management for custodians.

• A coupon is the annual interest rate paid on G-Bonds, expressed as a percentage of the face value. It is paid during the bond’s life cycle at regular intervals, which can be annually, semi-annually, quarterly, or monthly.  

• G-Bonds and Sovereign Sukuk coupons are subject to WHT with a default rate of 20% on accrued interest. The coupon interest calculations are as follows:

• Accrued Interest = (Face Value*Coupon Rate) * (Holding Period/Coupon Period).

• Holding Period = Coupon Pay Date or Selling Date – Purchase Date or Previous Coupon Pay Date.

• Coupon Period = Coupon Pay Date – Previous Coupon Pay Date.

• Taxes = Accrued Interest*20% (Default).

• When calculating the number of days for the coupon period, always include the start date (purchase date/bond holding) and exclude the payment date of the coupon period.

• CA payment proceeds, whether it is a coupon payment (interest) or redemption proceeds (principle amount), will be credited directly to the custodians on the payment date. It’s important to note that the interests/redemptions claim requests are no longer required by custodians.

• CA proceeds will automatically be credited to the custodians’ cash account on the RTGS system at the beginning of the event pay date

• For non-RTGS custodians (custodian companies), CA proceeds will be credited to their appointed settlement bank’s RTGS cash accounts.    

The cashflow payments maintenance screen on the CSD system will display all the payment details for the client’s entitlements. On the payment date of the CA events, the following data will be shown on the screen:

• Custodian name.

• Client unified code.

• Client account number.

• SI reference (Payment SWIFT message reference).

• Tax reference (Tax amount SWIFT message reference).

• Entitlement Quantity.

• Gross amount.

• WHT rate.

• WHT amount (based on the number of accrued interest days/selling rate of T-Bills).

• Net amount.

• ISIN Status (Paid, Submitted, Authorized, Book Closed, Scheduled, Failed, Expired or Void).

• Any CA payment proceeds will be subject to market charges, which are deducted from the custodian on a monthly basis, with a maximum amount of EGP 510 per payment.

• Since the settlement life cycle extends up to T+5, restrictions are applied to EGX’s ETP to ensure that no settlement date falls on a coupon pay date or redemption date. This means that the maximum settlement date shouldn’t exceed the CA event record date.

• The pledge contract should specify whether the pledgee or the pledgor will receive the entitlements of the government debt instruments’ coupon interest and/or redemption on the maturity date. Consequently, no claims need to be submitted from the pledgee bank.

• All entitlement benefits will be paid automatically to the pledgee bank on the pay date according to the terms included in the pledge contract.

• The default tax applied is the WHT rate of 20%, calculated on the accrued interest based on the holding period. However, based on the Double Taxation Treaty (DTT), a client may receive a discounted tax rate or exemption as an end beneficial owner, once the tax documents submitted by the custodian are approved by ETA.

• Yes, the tax amount relevant to CA payments will be automatically deducted on ECSD’s side, and custodians shall receive the net amount of the payment.

•  Redemption Process: It is the repayment of the face value of the government securities (T-Bonds and T-Bills) at the pre-defined maturity date.

•  Types of Redemption Events:

1. Early Redemptions.

A callable bond is a debt instrument that can be redeemed early (fully or partially), at the issuer’s discretion before its maturity. A callable bond allows the MoF to pay off their debt early and benefit from favorable interest rate drops.

2. Partial Early Redemption.

3. Final Full Redemption.

The Cashflow Payments Report: It provides all the necessary information regarding security ISIN payment details and status. The Cashflow Payments Report shows the following details:

• Client unified code.

• Client full name.

• Entitlement quantity.

• Gross amount.

• WHT rate.

• WHT amount.

• Net amount.

• SI reference (Payment SWIFT message reference).

• ISIN Status (Paid, Submitted, Authorized, Book Closed, Scheduled, Failed, Expired or Void).

Detailed G-Bond Events (Cashflow) Report:

 It provides all the necessary information regarding the upcoming security ISIN entitlement details, including:

• Effective date (Event payment date).

• Ticker code (ECSD code per ISIN).

• ISIN Short name.

• Payment type.

• Current holding balances.

• Schedule date.

• Entitlement date.

• Rate.

• Payment factor.

• Gross amount.

The types of taxes are withholding tax (WHT) and capital gain tax (CGT):WHT:

• It is levied on accrued interests for fixed-rate and floating-rate

  G-Bonds/T-Bills, and on the redemption of zero-coupon bonds.

• The default tax rate is 20%.

 CGT:

• It is calculated on the net profits generated on trade transactions after deducting all relative accrued interests gained.

• The CGT is levied on residents, regardless of their nationality, and the default tax rate is 10%.

• The capital gains will not be deducted from investor’s proceeds; however, periodic reports are sent to the MoF accordingly.

ECSD acts as a deducted tax agent for all the government debt instruments (G-Bonds/T-Bills). ECSD is responsible for communicating  and following up with ETA regarding the deduction and transfer of the tax amounts on the back of trades and CA events to ETA. Will ECSD deduct CGT?

• ECSD will not deduct CGT unless MoF requires it. Instead, it will only calculate and report the CGT to the MoF.

• Foreign investors can apply for a reduced tax rates/exemptions, based on their nationality, provided that their country of residence maintains a DTT with Egypt.

• Custodians have to provide supporting documents (Certificate of Beneficial Ownership -CBO and Certificate of Tax Residency- CoTR) for their clients to ETA.

• Once ECSD receives ETA’s approval, the tax refund will be applied, and the DTT rate will be applied until its expiration date.

• Reports on the CSD system can be extracted in multiple formats, including pdf, xls, and csv.

• To update the addresses of specified individuals, custodians must submit a request to the designated email address (INFO.ECSD@cbe.org.eg),specifying the required adjustments (additions or removals) for email addresses.

• Custodians must fill out the template of the ASL, indicating the individuals they intend to add or remove the authorized signers. This document must be signed by one of the existing authorized signers and stamped, along with an external signature verification. Custodians should deliver the original document to ECSD’s premises.

• To create a user account or modify a password on the CSD system, individuals must submit a request to the CBE Service Support Team via email at Service.Support@cbe.org.eg or contact them at the designated telephone number: 2770 1555.

• ECSD conducts training sessions, as part of the FRA requirements for individuals to become licensed custodian practitioners for government debt instruments. The main objective of these training sessions is to provide participants with an introduction to the fundamentals of custody services, ensure that the individual members (users) become familiar with the CSD user interface, facilitate navigation through the various CSD functions, and obtain the necessary custodian practitioner license for the relevant staff members to suffice the FRA’s custodian license requirements.

To facilitate the account opening process with ECSD, banks and/or companies are required to adhere to the following steps:

1. Documents Submission: Complete the necessary account opening templates and onboarding documents available on ECSD's website and in the government debt instruments’ rule book.

2. Connectivity Establishment: Promptly establish connectivity between the bank or company and the CBE.

3. User Forms Submission: Upon successful connectivity, proceed to fill out and sign the CSD system user forms. Submit scanned colored copies of the forms directly to the CBE's Service Support Team at Service.Support@cbe.org.eg for processing, ensuring that the copies are sent to ECSD.OPERATIONS@cbe.org.eg as well.

• REPO is a repurchase agreement that refers to short-term borrowing instrument, and represents an agreement between two parties (buyer and seller). Accordingly, the dealer is committed to sell the securities to the buyer with a promise to reverse the transaction according to the REPO’s agreement term at a predefined date. Dealers execute REPO deals on EGX’s ETP; however, REPOs are not part of the secondary market operations.

• REPO deals are settled on the CSD system wherein the ownership of the government instruments is changed.

REPO free of payment:

With Tax Calculation:

• Trade will be settled on  FoP basis through tranches transfer from the seller to the buyer, alongside the new trade details that were executed on the EGX.

• The company calculates and deducts the taxes from the seller’s end.

• ECSD doesn’t participate in any cash settlement for this type of REPO,  payments are settled separately on RTGS between both parties without the involvement of ECSD.

Without Tax Calculation:

• Trade will be settled on FoP basis through tranches transfer from the seller to the buyer, alongside the new trade details that were executed on the EGX.  ECSD doesn’t participate in any cash settlement for this type of REPO. Payments are settled separately on RTGS via bank accounts without the involvement of ECSD.

• Tranches are transferred from the original seller to the buyer with the same specifications (purchase dates and prices).

REPO with Payment:

With Tax Calculation:

• Trade will be settled through tranches transfer from the seller to the buyer, alongside the new trade details that were executed on the EGX. 

• Cash settlement is executed on RTGS via bank accounts through ECSD.ECSD calculates and deducts the taxes from the seller’s end.

Without Tax Calculation:

• Trade will be settled through tranches transfer from the seller to the buyer, alongside the new trade details that were executed on the EGX.  Cash settlement is executed on RTGS via bank accounts through ECSD without tax calculation.

• Tranches are transferred from the original buyer to the new one with the (new purchase dates and prices).

• No tax is calculated during the settlement process at this phase.