FAQs

About Muqassa

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What is Muqassa and what is its role?

Muqassa is the clearing house of the Saudi Exchange. We reduce post-trade risk, provide a centralized counterparty risk management service and develop clearing services in accordance with international best practices.

Clearing Services

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What types of memberships does Muqassa offer?

Muqassa offers three types of memberships: 

  1. Direct Clearing member (DCM) 
  2. General Clearing member (GCM) 
  3. Non-Cleaning Member (NCM): Members who do not wish to be/cannot be any of the above membership types. However, NCMs have to appoint only one GCM to clear their transactions.

What Is Clearing?

Clearing is the process of guaranteeing and confirming transactions prior to settlement. A clearing house, like Muqassa, acts as an intermediary between two parties to a securities trade, by becoming the buyer to each seller and the seller to each buyer. We become responsible for guaranteeing the settlement of the transaction – meaning the trading parties no longer need to worry about the counterparty risk. 

What is the scope of Muqassa’s clearing guarantee?

Through its risk management mechanisms, Muqassa can guarantee settlement between its members and the obligations fulfilled by each party prior to settlement.

Who are the clearing members?

Clearing members are entities who are responsible for clearing securities traded by the entity and its clients. 

Will Muqassa clear all securities traded on the Saudi Exchange?

Yes, Muqassa clears all securities listed on the Saudi Exchange, however it holds the right to exempt certain securities from clearing, subject to CMA approval. Muqassa can also clear securities traded off the market.

Membership

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Who are the clearing members?

Clearing members are entities who are responsible for clearing securities traded by the entity and its clients.

What are the requirements to obtain a Muqassa membership?

An applicant that wants to apply for a clearing membership with Muqassa must meet the following criteria:

  1. You are an authorized person authorized by the Capital Market Authority for the purposes of the securities business regulations.
  2. A bank that is regulated by SAMA.
  3. You meet the minimum capital requirement based on the intended type of membership.
  4. You have the operations capacity to manage risk and operations.
  5. You have completed the Muqassa’s on-boarding process.

What types of memberships does Muqassa offer?

Muqassa offers three types of memberships:

  1. Direct Clearing member (DCM)
  2. General Clearing member (GCM)
  3. Non-Cleaning Member (NCM): Should you not wish to be/cannot be any of the above membership types. However, NCMs have to appoint only one GCM to clear their transactions.

Fees

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What are Muqassa’s fees?

Please refer to the Fees page