Nile Nile Information Information

Technology – NITTechnology – NITApplication Service ProviderApplication Service Provider

Mohamed Abdel Mohamed Abdel SalamSalam

Chairman & Chairman & Managing DirectorManaging Director

Al-Fardan5%

National Bank of

Egypt10%

MCDR Employees

Fund1%

3I InfoTech25%

MCDR59%

NIT OwnershipNIT Ownership

• MCDR Egypt 59%• MCDR Employees Fund Egypt 01% • National Bank of Egypt Egypt 10%• Al-Fardan Institution Abu Dhabi 05%• 3I InfoTech International Dubai/India 25%

ConsultantConsultant

Managing DirectorManaging Director

Chairman of the BoardChairman of the Board

CTOCTOSales & MarketingSales & Marketing

DirectorDirector

FinanceFinance

AdministrationAdministration

HR OperationsHR Operations

Training &Training &ORG ORG

DevelopmentDevelopment

Legal Legal DepartmentDepartment

MarketingMarketingCommunicationsCommunications

MarketingMarketing SegmentationSegmentation

&Selection/&Selection/BusinessBusiness

DevelopmentDevelopment

HRHR DepartmentDepartmentPresalesPresales F&A DepartmentF&A DepartmentMarketingMarketingSalesSales

GuardingGuarding&Security&Security

DepartmentDepartment

TechnicalTechnicalSupportSupport

SecuritySecurity ComplianceCompliance

officerofficer

OperationsOperations ASPASP

Analysis &Analysis &DesignerDesigner

DevelopersDevelopers

SupportSupport

Testing, QualityTesting, Quality Assurance &Assurance &

DocumentationDocumentation

SupportSupport

Develop, Design Develop, Design &operate &operate

LANLAN

Develop, Design Develop, Design &operate &operate

WANWAN

NetworkNetwork SecuritySecurity

ApplicationApplication SecuritySecurity

Financial SWSFinancial SWSDepartmentDepartmentCA DepartmentCA Department

SupportSupport

ImplementationImplementation

OperationsOperations

SupportSupport

SSB DepartmentSSB Department NetworkNetwork

SSBSSB

CACA

FinancialFinancialSWSSWS

FinancialFinancialSWSSWS

CACA

SSBSSB

Help DeskHelp Desk

InfrastructureInfrastructureDivisionDivision

Organizational ChartOrganizational Chart

CertificateCertificate AuthorityAuthority

FinancialFinancial SystemsSystems

SWIFT ServiceSWIFT Service BureauBureau

NITNIT

NIT Technical StructureNIT Technical Structure

NIT Financial SystemsNIT Financial Systems Clearing & Settlement Systems

• Settlement System – CSD• Clearing System – Clearing Banks

Central Depository Systems• Deposits System – Custodian Banks• Central Depository System – CSD• Pledge System - Banks

Custody System – Custodian Banks Trading System - Brokers Auto Blocking System – Brokers Settlement Guarantee System - Brokers Back Office System – Brokers & Custodian

Banks

Market OverviewMarket Overview

CSD

InvestorInvestor

Offer

Custodian

SecuritiesAuto Blocking

Executed Trades

Bid BuyingOrder

Buying Order

SellingOrder Broker

ExchangeTRADE EXC.

BrokerInvestorInvestor

Clearing Bank

Clearing Bank

Central Bank

FeedingSettlementAccounts

Addition toSettlement

Account

Settlement AccountsBalances

Settlement AccountsBalances

Debit InstructionsCredit Instructions

Debit/CreditClearing Banks

1

2

31

2

3

4

StocksValue5

66

88

10

9

11StocksValue

SGF

Covering Default

7

RegulatorRegulator

Custodian

Balance Confirmation

2

Portfolio TransfersPortfolio Transfers

Financial SystemsFinancial SystemsEx. Custody System OverviewEx. Custody System Overview

Custodian BanksCustodian Banks

Brokerage Brokerage FirmsFirms

ClientsClients

CSDCSD

1.1. Issuing Buy & Sell OrdersIssuing Buy & Sell Orders

2.2. Portfolio Transfer to another Portfolio Transfer to another custodiancustodian

3.3. Auto matching executed trades Auto matching executed trades with clients’ instructions/orderswith clients’ instructions/orders

4.4. Recording DepositsRecording Deposits

5.5. Clients’ balances/positions queryClients’ balances/positions query

Securities BlockingSecurities Blocking

Yes or No BalanceYes or No Balance

Clients OrdersClients Orders

Sending matched Sending matched transactions and transactions and

transfers for transfers for settlementsettlement

Issuance of Clients Issuance of Clients Statement of Statement of

securities accountssecurities accounts

Receipt of matched transfersReceipt of matched transfers

Financial SystemsFinancial Systems Custody System FeaturesCustody System Features

• Connected to the Exchange, CSD and brokers.• Easy management of shareholders’ accounts.• Several security levels and segregation of

tasks.• An extra backup to the CSD database.• Fully automated with Journal & printouts for all

operations.

Financial Systems Financial Systems Custody System BasicsCustody System Basics

The system depends on three main axis;• Using client unified code applied by the

Exchange

• The Auto Link between the CSD systems and the custodian systems

• Applying the auto match concept (matching trades executed at the Exchange with investors’ instructions)

Broker-Dealers56 Brokers

Current SituationCurrent Situation

SWIFT Service BureauSWIFT Service Bureau

Corporate Insurance companiesBanks

Broker-Dealers

InvestmentManagers

Stock Exchanges

DepositoriesTrustees

Clearing systems

PaymentSystems

SettlementSystems

Government Institutions

SWIFT SWIFT Service Service BureauBureau

SWIFT Service Bureau SWIFT Service Bureau Cont.

Future VisionFuture Vision

Certificate Authority - CACertificate Authority - CA

CustodiansCustodians

MCDRMCDR

Brokerage FirmsBrokerage Firms

IssuersIssuers

ConnectedConnected

Without legal EvidenceWithout legal Evidence

Stock ExchangesStock Exchanges

Capital Market Capital Market AuthorityAuthority

InvestorsInvestors

QueryQuery

Paper WorkPaper Work

Signature RequiredSignature Required

Clearing BanksClearing BanksCash Cash

Dividend BanksDividend Banks

MCDR EmployeeMCDR Employee

Current SituationCurrent Situation

Primary DealersPrimary Dealers

Certificate Authority - CA Certificate Authority - CA Cont.

CustodiansCustodians

MCDRMCDR

Brokerage FirmsBrokerage Firms

IssuersIssuers

ConnectedConnected

With Legal EvidenceWith Legal Evidence

Stock ExchangesStock Exchanges

Capital Market Capital Market AuthorityAuthority

InvestorsInvestors

QueryQuery

Clearing BanksClearing BanksCash Cash

Dividend BanksDividend Banks

MCDR EmployeeMCDR Employee

Future VisionFuture Vision

XXXXPrimary DealersPrimary Dealers

Digital SigningDigital Signing

Thank YouThank You