Muqassa Rules Approval

In reference to the public consultation draft of the Securities Clearing Center Rules announced by the Saudi Stock Exchange (Tadawul) on 17/07/1440H Corresponding to 24/03/2019G, and after extensive consideration on the suggestions and the comments received and applied the necessary amendments. Muqassa announces that the Board of the Capital Market Authority (“CMA”) has issued its Resolution Number 2019-137-1 Dated 12/04/1441H Corresponding to 09/12/2019G regarding the approval of the Exchange Rules below:

1.    Securities Clearing Center Rules (click here).
2.    Clearing Procedures (click here).
3.    Glossary of Defined Terms Used in the Exchange Rules (click here).

The Securities Clearing Center Rules and Procedures aim to enable Muqassa’s role as a Central Counterparty (CCP) clearing house in the Saudi Capital Market, regulate the clearing members’ responsibilities.

Along with the relationship, rights and obligations between the clients and the clearing members, that will contribute to develop clearing services in accordance with international practices, enhance market stability, reduce the post trade risks and enable the introduction of new financial instruments and services.

It should be noted that these Rules and Procedures shall be effective on 15th January 2020.