Muqassa, Edaa approve amended post-trade rules, glossary of terms

Logo of Saudi Exchange (Tadawul)

The Capital Market Authority’s (CMA) board of directors approved, on Jan. 3, the amended rules of trading and membership; the Securities Clearing Center (Muqassa); the Securities Depository Centre (Edaa); and short selling regulations, the Saudi Exchange (Tadawul), Muqassa, and Edaa said in a bourse statement.

The market regulator also gave the go-ahead for the amended regulations of securities borrowing and lending; trading and membership procedures; cash market clearing procedures; depository center procedures and the amended Glossary of Defined Terms used in the Exchange Rules.

Moreover, the CMA board canceled the documents of the exchange and centre procedures; orders aggregation accounts regulations; as well as the regulations and requirements of the depository centre for depository receipts issued outside the Kingdom according to the relevant instructions.

The provisions of the Exchange and Centre Procedures were included in two separate documents, the Depository Centre Procedures draft and the amended Trading and Membership procedures draft.

The provisions of the Regulations and requirements of the depository Centre for depository receipts were included in the amended Securities Depository Centre Rules draft. The orders aggregation accounts regulations will not be effective anymore, in accordance with the approved business model.

The amendments aim to increase the efficiency and attractiveness of the financial market for domestic and international participants and investors, while enhancing the post-trade infrastructure to provide safe and trustworthy financial framework.

The amended rules and cancelled documents will come into effect as of March 6, 2022.

To view the amended market rules and procedures, click here: