MUSCAT CLEARING AND DEPOSITORY AND ATOS LAUNCH THE NEW POST TRADE INFRASTRUCTURE FOR THE OMANI FINANCIAL MARKET PLACE
Muscat Clearing and Depository (MCD) and Atos are pleased to announce the successful launch of “Universal Clearing Settlement and Depository system”, UCSD, the new post trade system.
Muscat Clearing and Depository (MCD) has been striving to adopt the best practices followed in the markets globally and aligning itself with international standards. With this perspective, it was looking to implement a highly automated state of the art Clearing, Settlement & Depository system.
UCSD was designed and developed by Atos in accordance with MCD current and future business needs as well as regulatory demands of financial market place of the Sultanate of Oman. This new system will bring major business enhancements as well as maintaining costs efficiency throught open technologies. The main business enhancements include:
• A Settlement Securities System (SSS) supporting additional resilience thru enhanced Delivery versus Payment (DvP) and flexibility thru multiple settlement cycles and mode
• An exhaustive set of depository services allowing investors, custodians and banks to sustain theirs operations
• A complete set of issuers services: Corporate Actions, Issuers Payment Agent, IPO Agent providing added values services and processes efficiency
This joint project is a part of a long term partnership which includes both a ten-year contract to support change and evolution and a knowledge transfer allowing Muscat Clearing and Depository to drive its own future with the ability to adapt its core system.
Muscat Clearing and Depository and more globally the financial market place of the Sultanate of Oman are in the position of starting new business initiatives such as Lending and Borrowing, Cross border settlement and OTC. This will further enhance and modernize the Omani market place that has already shown an entrepreneurial character in adopting future-ready systems to anticipate the next moves in the regional markets.
Mr. Abdullah Al Nabhani General Manager for MCD said:
The company has been established according to the Royal Decree no. 82/98 issued in November, 25, 1998. It is a closed joint – stock company, MSM owns 60% of the company’s capital, investment as well as brokerage companies and the banks own 40%. MCD is providing the following main services:
• Safekeeping and maintaining more than 384,000 accounts, 90% of these accounts are Omanis.
• Registering and providing the concerned authorities with information related to investors.
• Preforming Pledge/Restriction and Release of the securities.
• Distributing cash and stock benefits to investors on behalf of the Issuers.
• Risk management related to trading in capital markets in the form of SGF (settlement Guarantee Fund).
In addition, there are some major features and functions incorporated in the implementation of the new system:
• A flexible account structure is introduced in our market based on the best Practices to cater to the needs of retail investors as well as custodial clients
• Adoption of DVP mode for settlement.
• Confirmation Rejection / Acceptance of the custodian client’s trades’ by the custodian.
• Multiple settlement sessions and partial settlement.
• The possibility of Cross boarder listing and listing in multiple currencies.
• There are a number of features which will reveal in the near future which the new system supports, and will announce for them accordingly.
Mr. Raymond BAN Head of Financial Services at Atos said:
“In Atos we are Business Technologists and we use IT as a business enabler. We are very proud of our UCSD but it would have less meaning without the business benefits which it brings to the Omani financial market place. We had to implement the “so called” International best practices while still respecting the specificities of Muscat Clearing and Depository. The result is a new system addressing both regional markets and International business rules. From the technology standpoint the UCSD is running the latest technologies with an optimized TCO and linear scalability.
The long term partnership with MCD enabled confidence and trust all along the journey for the transformation from the legacy system to the new UCSD. This supports our vision for the future: to accelerate progress by uniting people, business and technology.”
Atos SE (Societas Europaea) is an international information technology services company with 2013 annual revenue of €8.6 billion and 76,300 employees in 52 countries. Serving a global client base, it delivers IT services in 3 domains, Consulting & Technology Services, Systems Integration and Managed Services & BPO, and transactional services through Worldline. With its deep technology expertise and industry knowledge, it works with clients across the following market sectors: Manufacturing, Retail & Transportation; Public & Health; Financial Services; Telcos, Media & Utilities. Atos is focused on business technology that powers progress and helps organizations to create their firm of the future. It is the Worldwide Information Technology Partner for the Olympic & Paralympic Games and is quoted on the NYSE Euronext Paris market. Atos operates under the brands Atos, Atos Consulting & Technology Services, Worldline and Atos Worldgrid.