SECURITIES ACCOUNTING SYSTEM PECULIARITIES I N GEORGIA CLEARING

SECURITIES ACCOUNTING SYSTEM PECULIARITIES I N GEORGIA CLEARING & SETTLEMENT P R E S E N T A T I O N M O S C O W O C T O B E R 2005

GCSD Accounting Systems Block Scheme Transfer Sub. System Deposits Sub. System Clearing and Settlement Sub. System Accounts System • Members • Clients • Members’ Clients Reports and Extract Sub. System Statistical and Analysis Sub. System Remote Access Systems to/from: • GSE Billing Sub. System • Banks Backup Sub. System • Registrars Archive Sub. System • Members • Clients Financial and Accounting Sub. System for Service Fees

GCSD’s Pre - Trade Operation Procedures Cash from BANKS Securities from GCSD DBase GCSD before Trade Cash Deposit Security Deposit Cash Transfer Security Transfer Export Trade Positions

GCSD Post - Trade Operation Procedures Import Trade Positions CLEARING and SETTLEMENT Sweep Trading Accounts Sweep Cash Print Cash Payments BANK Sweep Securities Print in GCSD DBase REGISTRAR

Clearing Commercial Banks System Commercial Bank #2 Georgian Central Commercial Bank #3 Securities Depository (CD) Commercial Bank #4 Commercial Bank #2

Cash Settlement BC Account #1 Buyer’s order to cash transfer before opening trades at GSE Member of CD CD Account Commercial Bank #1 BC Account #2 Brokerage Company #1 Cash Transfer Confirmation of Cash Transfer Syst em Cash transfer to securities seller after closing trading session at GSE Brokerage Company #2 Member of CD Confirmation of Cash Transfer Georgian Central Securities Depository (CD)

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Contact Information Georgian Central Securities Depository TELEFONS: (995 32) 22 -07 -18; (995 32) 22 -07 -49 FAX: (995 32) 25 -18 -76 WEBSITE: www. gcsd. ge GEORGIA, 0126, TBILISI, Chavchavadze ave. 74 a DIRECTOR – GAIOZ SANADZE