As part of the Capital Market Authority's ("CMA") strategic objectives to develop the capital market, and in pursuance to achieving the objectives of the Financial Sector Development Program 2020, and in line with the Saudi Vision 2030, and based on the Capital Market Law issued by Royal Decree No. (M/30) Dated 02/06/1424 H, the CMA Board issued its Resolution to publish the draft Central Counterparties Regulations ("Draft Regulations") for public consultation for a period of (14) calendar days ending on 27/1/1441H corresponding to 26/9/2019G.
The Draft Regulations aims to regulate securities clearing activities in the Kingdom and specify the requirements for obtaining an authorisation to carry out such activities, which will contribute to introducing new securities classes and services to investors and guaranteeing the settlement and fulfilment of obligations of transactions parties. This will in turn further strengthen the current market infrastructure and enhance its efficiency.
The Draft Regulations defines clearing as the process of establishing each party's rights and obligations arising from securities trading, including the calculation of net obligations and ensuring that financial instruments or cash are available to secure the exposures arising from such obligations.
During the preparation of the Draft Regulations, the CMA took into consideration the best international practices in this regard and the Principles for Financial Market Infrastructures (PFMI) issued by the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO).
The CMA, with full gratitude, would receive the opinions and comments of relevant and interested persons, through any of the following channels:
• Email (Laws.Regulations@cma.org.sa);
• Fax number (+966114906460); or
• Mail address (P.O. Box 87171 Riyadh 11642, CMA Deputy for Legal Affairs and Enforcement – Laws and Regulations Department).
All comments will be taken into full consideration for the purpose of finalising the Draft Regulations.
The Draft Regulations can be viewed via the following link:
Draft Central Counterparties Regulations
مسودة لائحة مراكز مقاصة الأوراق المالية
