|16 January, 2020

Saudi CMA approves derivatives trading rules

The derivatives exchange trading and membership rules and procedures aim to regulate derivatives exchange membership and trading activities on derivatives

A man checks his mobile phone next to a screen with Saudi Stock Exchange (Tadawul) prices in Riyadh, Saudi Arabia September 16, 2019. REUTERS/Stringer

A man checks his mobile phone next to a screen with Saudi Stock Exchange (Tadawul) prices in Riyadh, Saudi Arabia September 16, 2019. REUTERS/Stringer

Riyadh – Mubasher: The Saudi Stock Exchange (Tadawul) announced that the Board of the Capital Market Authority (CMA) has approved rules for derivatives exchange trading and membership rules and procedures.

The derivatives exchange trading and membership rules and procedures aim to regulate derivatives exchange membership and trading activities on derivatives.

The planned launch of a Derivatives Market in Saudi Arabia follows on recent significant market developments, including the commencement of the Central Counterparty Clearing House (CCP) to develop future clearing services, Tadawul said in a statement on Wednesday.

Moreover, Tadawul will launch an index futures contract based on MSCI Tadawul 30 Index (MT30).

The Saudi stock exchange is also planning to launch additional derivative products gradually as part of its strategy to diversify its product offering and provide more investment opportunities for market participants.

On Tuesday, The Saudi CMA Board of Commissioners authorized Securities Clearing Center Company (Muqassa) to provide securities clearing services in the Kingdom as a designated Qualified Central Counterparty (QCCP).

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