Securities Clearing Center Company, Muqassa, Announces its Continued Compliance with the PFMI

The PFMI review was conducted by Muqassa and Thomas Murray in line with CPMI-IOSCO self-assessment, a rigorous, periodic review process where FMIs evaluate their compliance with the 24 Principles. Together we examined central counterparty (CCP) risk in the context of best global practices for the cash and derivatives market, in addition to the REPO clearing service.

PFMI international standards

The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) are the standard-setting organisations that have issued the PFMI and monitor their implementation. These Principles are international standards for payment systems, central securities depositories, securities settlement systems, central counterparties and trade repositories.

The PFMI are designed to help ensure the safety, efficiency and resilience of these infrastructures supporting global financial markets, making their full, timely and consistent implementation fundamental. CPMI and IOSCO members have committed to adopting the principles and responsibilities contained in the PFMI in line with the G20 expectations.

About Muqassa

The Securities Clearing Centre Company, Muqassa, a wholly‑owned closed joint‑stock subsidiary of the Saudi Tadawul Group, was established in 2018 as one of Saudi Arabia’s Financial Sector Development Program 2020 key initiatives and an important component in the Saudi market’s expansion to new products and services such as derivatives.

Muqassa began operations in the second half of 2020 and has developed infrastructure, rules, processes and procedures that are in accordance with international best practices and standards. Muqassa began operations clearing Stock Index Futures on the MT30 index and then Single-Stock Futures and will eventually clear a variety of derivative instruments. In April 2022, Muqassa launched central counterparty clearing services for all securities traded on the Saudi Exchange & REPO.

About Thomas Murray

Thomas Murray is the global authority in asset safety, providing resilience intelligence, and risk benchmarking for asset owners and managers, custodians, and financial market infrastructures.

Our risk management and capital markets experts are pleased to have supported Muqassa’s continuing mission to aid the Kingdom of Saudi Arabia’s efforts to comply with the CPMI-IOSCO PFMI as part of the wider G20 requirements.