Muqassa Introduces Sponsored Access for Repo

The Securities Clearing Center Company (“Muqassa”), has announced the launch of its Sponsored Access Service, which will allow non-banking entities to directly access the Repo Market.

Under this model, the General Clearing Member appointed by the Sponsored Access user takes on full responsibility for all clearing obligations, exempting the Sponsored Access user from most of the responsibilities and administrative processes associated with Cleared Repo Transactions.

Current practice only allows banks who are General Clearing Members to access Muqassa’s Repo Market. The introduction of Sponsored Access marks a significant expansion that will enhance overall market accessibility to non-banks.
 
Potential users of Sponsored Access include Asset Managers, Government-Related Funds, Money Market Funds, and any other institutional bond/sukuk holders.

Key benefits of sponsored access include:

•    Faster Market Entry: Sponsored Access service facilitates quick onboarding for non-banking entities and immediate access to the Repo Market, providing sponsored access users with faster access to funding or investment opportunities.
•    Reduction of Counterparty Risk: Bilateral counterparty credit risk is mitigated through novation to Muqassa.
•    Forward Repo 
•    Opt-out function
•    Roll Over feature

To benefit from this service, kindly reach out to Muqassa team via email AM@muqassa.sa