Media ININ Economy We Trust
Media In / Agencies / Riyadh 2 May 2018
The Saudi Stock Exchange (Tadawul) announced today the establishment of the Clearing House Company (“Clearinghouse”) a joint stock company with a capital of SR 600,000,000 to develop future clearing services in line with international risk management practices and international standards.
The Capital Market Authority, the Saudi Arabian Monetary Agency (SAMA) and the Saudi Arabian Monetary Agency (SAMA) have begun to work on the legal procedures necessary to activate the Clearing House’s role to enable it to start its full operations during the second half of 2019.
The establishment of an independent clearinghouse will diversify investment opportunities in the market by enabling it to provide new securities such as derivatives and others that will help investors diversify their trading strategies and enable Saudi companies to hedge their risks, increasing the attractiveness of the Saudi financial market to investors of all categories.
The clearing house will also contribute to increasing the risk management of the market through the introduction of new mechanisms to reduce it, which will ensure the completion of the settlement and the fulfillment by the various parties of their obligations when settling transactions in the market. This will improve the current market infrastructure and enhance its operational efficiency.
The Chairman of the Board of Directors of the clearing center, Eng. Khalid Bin Abdullah Al-Hussain, said that the establishment of the clearing center comes as an effective step to support the development of the Saudi financial market and diversification of investment opportunities. It will strengthen the infrastructure of subsequent transactions procedures. Attract investment in the Saudi financial market in line with international standards and achieve the vision of the Kingdom 2030.
The Board of Directors of the clearing center approved the appointment of Wael bin Abdullah Al-Hazani as the executive director of the company.
