Saudi Arabia's Capital Market Authority (CMA) Board has authorised Securities Clearing Centre Company (Muqassa) as the first Centre Counterparty to conduct securities clearing services in the Saudi Capital Market and the first Qualified Centre 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 Programme (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. -- Tradearabia News Service