Muqassa to commence operations on August 30

The Securities Clearing Center Company (Muqassa) will commence operations on Aug. 30, 2020, following the announcements of its establishment in 2018 and its license earlier this year, according to a statement on Tadawul.

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’s 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 Aug. 30, 2020 and other markets to follow at a later stage, the statement added.

In January this year, the Capital Market Authority (CMA) approved authorizing Muqassa to provide securities clearing services in the Kingdom, Argaam reported. CMA also approved Muqassa’s rules, clearing procedures and glossary of defined terms used in the exchange rules.