Muqassa Launches Repurchase Agreement Clearing service

The Securities Clearing Center Company (Muqassa) launches Repurchase Agreement Clearing (REPO) Service on 24/04/2022.

Repurchase Agreement Clearing service provided by The Securities Clearing Center Company (Muqassa) come as part of our ongoing efforts to accommodate the needs of the investors and clearing members. The Group, alongside its subsidiaries, continues to evolve to support the development of a technologically advanced, diverse and integrated capital market.

Muqassa’ s REPO Clearing service, a form of short-term borrowing, will be available to General Clearing Members and investors. and will be settled by the Securities Depository Center Company (“Edaa”).

The service will increase transparency, shift liquidity from unsecured to secured lending markets at lower costs and facilitate access to liquidity for market participants with improved operational efficiencies while reducing overall market risk. This service also contributes to enhancing the depth of the Sukuk and bond markets in Saudi Arabia.

The service comes as the first non-traded product to be cleared by Muqassa, after activating the central clearing services. This service complements Muqassa ongoing efforts to develop the clearing services on a wider scale beyond the Capital Markets, as of today Muqassa activated the clearing services on the Main Market, Nomu-Parallel Market, Sukuk, Bonds, Funds and Derivatives traded in the Saudi Exchange, in addition to repurchase agreements. Muqassa establishment and operation is one of the main Financial Sector Development Program initiatives under Vision 2030.

The first Repurchase agreement has been executed, cleared and settled with a notional value of SAR 500 million on Saudi Government Sukuk.