Lebanese and foreign Banks, Financial Institutions, Funds, Central Securities Depositories, Clearing Houses, Issuers and Central Banks are eligible to become members of Midclear.
A- How to become a Member of Midclear?
The company (foreign or Lebanese) must submit a written request of affiliation and enclose therewith its requested official documents as follows:
The request should comply with all the requirements specified by Midclear in accordance with the issued General Rules and Instructions, then the Board will issue a decision approving the affiliation of the Company and the new member will be registered at Midclear with a membership code which will be used in its operations.
All Midclear’s Members must send their Local and Foreign cash correspondents i.e Settlement Standard Instructions (SSI) according to the following format: (PDF)
FATCA Compliant: IRS Certification Form
Additional procedures should be followed for issuers and foreign members:
An agreement should be signed between Midclear and issuers identifying the duties of each party and defining terms to apply for the management of its shareholder register.
for foreign members:
Midclear and foreign members should sign a subcustody contract identifying the employment of Midclear as a subcustodian, property to be held by it,
and duties of the subcustodian with respect to property of the member held by the subcustodian.
Opening and management of cash account:
In order to effect the cash settlement process, the opening of a cash account at the Real Time Gross Settlement System (BDL-RTGS) which is acting as the settlement bank, is necessary.
Therefore, all Lebanese members (except for Issuers) are required to participate, for each currency used for clearing purposes, in the National Payment System, or, must make arrangements with a commercial local bank to provide settlement services on their behalf.
It is worth noting that, all Non-Resident Members are not eligible to have their own settlement accounts and must make arrangements as well with a commercial local Bank.