|14 January, 2020

Muqassa obtains the first license in Saudi Arabia to clear securities as a qualified center counterparty (QCCP)

Licensing (Muqassa) is a key enabler to clear the upcoming Derivatives Market

Riyadh: Securities Clearing Center Company (Muqassa), announced today that the Capital Market Authority (CMA) Board has issued its resolution to authorize Muqassa as the first Center Counterparty to conduct securities clearing services in the Saudi Capital Market and the first Qualified Center Counterparty (QCCP) in Saudi Arabia.

Wael Al Hazzani, CEO of Muqassa, said: “This is a significant step that complements the ongoing development of the Capital Market infrastructure, and further strengthens its advanced position among global markets. Our primary goal at Muqassa is to maintain operational efficiency through offering advanced clearing services in accordance with international practices to enhance market stability and investors’ confidence.”

Licensing (Muqassa) is a key enabler to clear the upcoming Derivatives Market; planned to launch in the first quarter of this year. This step followed upon amending the Capital Market Law (CML) and the Securities Central Counterparties Regulations aiming to regulate securities clearing activities in Saudi Arabia.  Also, Qualifying (Muqassa) as a (QCCP) will provide benefits that contribute to reduce capital requirements for Muqassa members.

Muqassa’s establishment is one of the initiatives under Vision 2030’s Financial Sector Development Program (FSDP). In addition, it is an important step in activating the Saudi Derivatives Market therefore further expanding products and services offered in the Saudi Market.

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About The Securities Clearing Center Company (Muqassa)

The Securities Clearing Center Company (Muqassa) was established in 2018 as a closed joint stock company fully owned by the Saudi Stock Exchange (Tadawul), with a capital of (SAR 600,000,000). Muqassa will contribute to reduce Post-Trade risks, provide centralized counterparty risk management, and develop clearing services in accordance with international practices to align with advanced global capital markets, which in turn will attract investors to the market.

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