Subject: PDT
Securities Clearing Center Company (Muqassa) Announces the Operations Commencement Date
RIYADH, Saudi Arabia, July 14, 2020 /PRNewswire/ -- 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.
Tadawul Contact:
Mohammed Al Abdullah
+966 (54) 541-1133
[email protected]
Finsbury Contact:
Ahmed Jebur
+971 (52) 290-3518
[email protected]
SOURCE Muqassa
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