The Saudi Capital Market Authority (CMA) disclosed to Asharq Al-Awsat on Wednesday that the draft of the pending Central Counterparty Clearing House ("CCP") for clearing of securities in the Saudi capital market will be issued soon.
The CCP will be responsible for developing future clearing in accordance with the best international risk management practices and standards.
The CMA, Saudi Arabian Monetary Authority (SAMA) and Tadawul have already initiated the required regulatory regime to activate the CCP function, in order to enable it to fully operate by the second half of 2019.
CMA Chairman Mohammed El Kuwaiz said the draft will be listed within weeks, noting that it is in keep with market adjustments ordered by the cabinet recently.
“In the coming weeks, we are going to implement major modernization, especially for securities regulations, which will facilitate this process, both for companies in the main market and for companies in the parallel market,” Kuwaiz told Asharq Al-Awsat.
Bader Bin Mohammed Balghonaim, CMA’s Deputy of Legal Affairs and Enforcement, for his part, reaffirmed that the amendments introduced to the financial market are considered a regulatory leap in terms of legislation.
Balghonaim confirmed that change was introduced after benefiting from international experience and the public opinion of the specialists and workers in the financial sector.