THE SECURITIES CLEARING CENTER COMPANY (MUQASSA) AND SECURITIES DEPPOSITORY CENTRE COMPANY (EDAA) ANNOUNCES THE APPROVAL OF THE AMENDED CASH MARKET CLEARING PROCEDURES AND THE AMENDED DEPOSITORY CENTRE PROCEDURES
Securities Clearing Centre Company (Muqassa) announces that its Board has issued its resolution number (24-2022) dated 24/05/2022G approving the following: • The Amended Cash Market Clearing Procedures. (click here) In addition, Securities Depository Center Company (EDAA) announces that its Board has issued its resolution number (07-2022) dated 24/05/2022G approving the following: • The Amended Depository Centre Procedures. (click here) The amendments include changing the failed settled trades intended settlement date (ISD), from Two business days from the intended settlement date (ISD) to Eight business days from intended settlement date (ISD), and Muqassa will initiate the cash substitution process, whereby securities obligation is substituted with a cash obligation, if the securities are not delivered by the intended settlement date (Eight business days from the ISD). As a result of these changes, market participants will have an extension to obtain securities through the optional buy-in board. In addition to the possibility of obtaining securities from the main market and have trades settled before mandatory buy-in activated after Five business days from the intended settlement date (ISD), thus avoiding substitution and increasing the chances of delivering securities to clients effectively, which preserves the rights of all counterparties of the failed settled trade. These Procedures shall be effective on 09\01\1444H corresponding to 07\08\2022G.