www.qe.com.qa

Qatar Exchange

Misnad Al-Misnad

CRD Director April 2012 www.qe.com.qa

Qatar: a snapshotPopulation2

21.3% annual growth 2004-2010 to reach 1.7 million

Oil & gas3

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 2022

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QE History

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1997 First day of trading of securities at

Doha Securities

Market (DSM).

1998 Introduction of

the Central Registration

System.

1999 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.

2002 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.

2007 Became correspondent

of World Federation of Exchanges

(WFE).

2009 Signed strategic

partnership agreement with

NYSE Euronext to

transform Qatar Exchange into

world-class market.

2010 launched NYSE

Euronext Universal Trading Platform

April 2011

Implementation of DVP

Connectivity

December 2011

T-Bill market

QIA - QE - NYSE Euronext partnership

80% shareholding of QE through Qatar Holdings

20% shareholding of QE

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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 Country’s 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

• 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

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QE Strategy

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

Regulatio

n Regula

tion

Educatio

n

Educa

tion

QE Strategy

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QE: a snapshotInvestors

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 2004-2011

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)

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Market Capitalization

QE Investors’ Demographics: a snapshot – 2011

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Annual Turnover

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

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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

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The CRD’s 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

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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…

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TradeExecution

Clearing

CSD – Depository / Registry

Current Settlement Model (BIS Model II) Settlement Cycle T+3

SettlementBank (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.

1 2 3

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5

Commercial Banks

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The CRD in Numbers (2011)

• 9,371 Exempt Transfers• 1,540 Pledges• 3,694 New Accounts opened• 197,287 Account issued statements

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2012 so far & still to come

• Successful DvP Implementation• Buyer’s Compensation Enhancement• New Custodians• Securities Lending Program• VaR-based Risk Management• SWIFT Developments

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THANK YOU