DUBAI - Dubai Clear, a subsidiary of the Dubai Financial Market (DFM), and the Securities Clearing Centre Company "Muqassa", a subsidiary of Saudi's Tadawul Group, have signed a Memorandum of Cooperation (MoC), creating a broad framework to strengthen collaboration and share knowledge on central clearing services as well as to actively explore ways of enhancing these services in line with international best practices.
The MoC was signed by Fatma bin Qedad, General Manager of Dubai Clear, and Wael Abdullah Al Hazzani, CEO of Muqassa.
The agreement aims to lay the foundations for close relations between the two sides in several areas of cooperation, including sharing knowledge and information, exploring collaboration opportunities in central clearing development and training, and jointly organising events.
Fatma bin Qedad said, "We are delighted to sign this Memorandum with Muqassa, in a significant step that heralds a new stage of wide-ranging cooperation for the benefit of various market participants and strengthen investment activities in capital markets of Dubai and the Kingdom of Saudi Arabia. We look forward to implementing the MoC to create an efficient framework for knowledge and information sharing as well as to support the two companies' drive to achieve their strategic objectives relating to embracing best practices of central clearing."
Al Hazzani said, "Our latest agreement with Dubai Clear is another step in our journey to work with regional clearing houses and strengthen regional capital market infrastructures. We look forward to working with Dubai Clear to explore the mutually beneficial opportunities that will be unlocked by cooperation to drive innovation, advance business development, and ultimately increase the attractiveness of our markets."
Dubai Clear has transformed the clearing landscape in the UAE due to its advanced framework and technology for risk management and automated trade settlement process in line with international best practices. The Company has expanded its services to include equities and derivatives, offering its members a complete equity product suite in a secured and regulated market infrastructure framework.
Likewise, Muqassa contributes to the Saudi capital market by reducing post-trade risks, provide a centralised counterparty risk management and develop clearing services in accordance with international best practices.