SABB has been granted approval by the Securities Clearing Center Company (Muqassa) to act as a general clearing member to conduct clearing activities in the Saudi Stock Exchange (Tadawul).
Muqassa was established as the central counterparty clearer in the Saudi financial markets in line with international standards. The move will see SABB join the clearing house, which is part of the Financial Sector Development Program that supports the goals of Vision 2030, namely the development of a more diversified and effective financial sector in the Kingdom.
This will facilitate the growth of the Saudi capital markets by improving the post-trade infrastructure, reducing counterparty risk, optimizing operational efficiency and enabling the introduction of new financial products and services.
Majed Najm, deputy managing director for corporate and institutional banking, said: “Given our leading position in the financial sector, we are committed to our role as an active partner in fulfilling the Kingdom’s aspirations as well as our aim to help pioneer the development of the financial markets.
“We are also delighted to build on our proud legacy of supporting our customers with unrivalled service.”
This news follows Tadawul’s announcement of launching the new derivatives market on Aug. 30. It marks the beginning of trading in Saudi Futures 30 Index (SF30), which is Saudi Arabia’s first exchange-traded derivatives product.
Najm added: “We’re seeing real progress in the diversity and maturity of the Kingdom’s financial markets capabilities — it’s an exciting journey and we want to keep playing an active part in it.”
