- The independent clearinghouse (Muqassa) will strengthen Saudi capital market 
infrastructure and increase operational efficiency 

    The Securities Clearing Center Company (Muqassa), announces today that it 
will commence operations on 30/08/2020 corresponding to 11/1/1442H. Post the 
announcements of its establishment in 2018 and its license earlier this year, 
Muqassa aims to further support the growth of the Saudi capital market by 
improving the post-trade infrastructure, contribute to reducing counterparty 
risk, increase operational efficiency, and enable the introduction of new 
financial products and service offerings.

    The establishment of Muqassa is one of the Financial Sector Development 
Program (FSDP) initiatives, under the Kingdom Vision 2030, that also supports 
the commencement of derivatives trading on Tadawul. The clearing service will 
start with the Exchange Traded Derivatives, clearing MT30 Index Futures 
Contract on 30/08/2020 corresponding to 11/1/1442H, and other markets to follow 
at latter stage. 

    Wael Abdullah Al Hazzani, CEO of Muqassa, said: "The activation of an 
independent clearinghouse is part of the Financial Sector Development Program 
in line with Vision 2030 goals to develop a diversified and effective financial 
sector in the Kingdom. We believe that Muqassa will enhance the current 
financial market infrastructure by applying advanced risk management practices 
and transparent default management processes."

    The launch of Muqassa's operations is facilitated by the efforts undertaken 
by Tadawul, Muqassa, the Capital Market Authority (CMA), and the Saudi Arabian 
Monitory Authority (SAMA) to ensure the required Laws and regulations for the 
activation of the clearinghouse is in place. The recently amended Capital 
Market Law, the Securities Central Counterparties Regulations, the Securities 
Clearing Center Rules and Procedures will aid in regulating the securities 
clearing center and activating its role in performing its duties and 
obligations within the capital market infrastructure institutions.

    About Tadawul

    Saudi Stock Exchange (Tadawul) is the sole entity authorized in the Kingdom 
of Saudi Arabia to act as the kingdom's securities exchange (the Exchange), 
listing and trading in securities. The Saudi stock market is the 9th largest 
stock market among the 67 members of the World Federation of Exchanges and is 
the dominant market in the Gulf Cooperation Council (GCC). The Exchange is the 
3rd largest stock market amongst its emerging market peers. 

For more information see: www.tadawul.com.sa. 

    About the Securities Clearing Center Company (Muqassa)

Securities Clearing Center Company "Muqassa" was established in 2018 as a 
closed joint stock company fully owned by the Saudi Stock Exchange (Tadawul).

Muqassa establishment and operation is one of the Financial Sector Development 
Program 2020 (FSDP) initiatives, under the Kingdom Vision 2030.

Muqassa will contribute to reduce the Post-Trade risks, provide a centralized 
counterparty risk management, and develop clearing services in accordance with 
best international risk management practices to align with advanced global 
capital markets, which in turn will attract investors to the market. 

www.muqassa.sa

    Tadawul Contact:
    Mohammed Al Abdullah
    +966 (54) 541-1133
    mohammed.abdullah@tadawul.com.sa

    Finsbury Contact:
    Ahmed Jebur
    +971 (52) 290-3518
    Ahmed.jebur@finsbury.com

 
   Logo: https://mma.prnewswire.com/media/1214165/Muqassa_Logo.jpg 


    Source: Muqassa