AsiaNet 84775

RIYADH, Saudi Arabia, July 14 /PRNewswire=KYODO JBN/ --

- The independent clearinghouse (Muqassa) will strengthen Saudi capital market

infrastructure and increase operational efficiency

    The Securities Clearing Center Company (Muqassa), announces today that it

will commence operations on 30/08/2020 corresponding to 11/1/1442H. Post the

announcements of its establishment in 2018 and its license earlier this year,

Muqassa aims to further support the growth of the Saudi capital market by

improving the post-trade infrastructure, contribute to reducing counterparty

risk, increase operational efficiency, and enable the introduction of new

financial products and service offerings.

    The establishment of Muqassa is one of the Financial Sector Development

Program (FSDP) initiatives, under the Kingdom Vision 2030, that also supports

the commencement of derivatives trading on Tadawul. The clearing service will

start with the Exchange Traded Derivatives, clearing MT30 Index Futures

Contract on 30/08/2020 corresponding to 11/1/1442H, and other markets to follow

at latter stage.

    Wael Abdullah Al Hazzani, CEO of Muqassa, said: "The activation of an

independent clearinghouse is part of the Financial Sector Development Program

in line with Vision 2030 goals to develop a diversified and effective financial

sector in the Kingdom. We believe that Muqassa will enhance the current

financial market infrastructure by applying advanced risk management practices

and transparent default management processes."

    The launch of Muqassa's operations is facilitated by the efforts undertaken

by Tadawul, Muqassa, the Capital Market Authority (CMA), and the Saudi Arabian

Monitory Authority (SAMA) to ensure the required Laws and regulations for the

activation of the clearinghouse is in place. The recently amended Capital

Market Law, the Securities Central Counterparties Regulations, the Securities

Clearing Center Rules and Procedures will aid in regulating the securities

clearing center and activating its role in performing its duties and

obligations within the capital market infrastructure institutions.

    About Tadawul

    Saudi Stock Exchange (Tadawul) is the sole entity authorized in the Kingdom

of Saudi Arabia to act as the kingdom's securities exchange (the Exchange),

listing and trading in securities. The Saudi stock market is the 9th largest

stock market among the 67 members of the World Federation of Exchanges and is

the dominant market in the Gulf Cooperation Council (GCC). The Exchange is the

3rd largest stock market amongst its emerging market peers.

For more information see: www.tadawul.com.sa.

    About the Securities Clearing Center Company (Muqassa)

Securities Clearing Center Company "Muqassa" was established in 2018 as a

closed joint stock company fully owned by the Saudi Stock Exchange (Tadawul).

Muqassa establishment and operation is one of the Financial Sector Development

Program 2020 (FSDP) initiatives, under the Kingdom Vision 2030.

Muqassa will contribute to reduce the Post-Trade risks, provide a centralized

counterparty risk management, and develop clearing services in accordance with

best international risk management practices to align with advanced global

capital markets, which in turn will attract investors to the market.

www.muqassa.sa

    Tadawul Contact:

    Mohammed Al Abdullah

    +966 (54) 541-1133

    mohammed.abdullah@tadawul.com.sa

    Finsbury Contact:

    Ahmed Jebur

    +971 (52) 290-3518

    Ahmed.jebur@finsbury.com

   Logo: https://mma.prnewswire.com/media/1214165/Muqassa_Logo.jpg

    Source: Muqassa