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.
-Ends-
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.
© Press Release 2020Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
