Find out more about Saudi Tadawul Group’s Securities Clearing Center Company (Muqassa) subsidiary, which works to reduce post-trade risk by introducing new mechanisms to guarantee the settlement of trades.
- The Securities Clearing Center Company ‘Muqassa’ was established in 2018 as a closed joint stock company fully owned by Saudi Exchange (Tadawul).
- Muqassa is critical to future market infrastructure by enhancing market efficiency, and enabling Saudi market expansion into new products and services.
- Muqassa reduces post-trade risk, provides a centralised counterparty risk management service and develops clearing services in accordance with international best practice.
- The Clearing Center can guarantee any asset class, both traded in the exchange and over-the-counter (OTC). Muqassa also nets transactions between its members on a multilateral basis, decreasing the number and value of securities settlement transactions and cash payments.
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. Subsequently, Muqassa becomes responsible for guaranteeing the settlement of the transaction - meaning the trading parties no longer need to worry about the counterparty risk.
Muqassa improves the integrity of the market by introducing new mechanisms to guarantee the settlement of trades. This ensures the settlement is complete and that all parties meet their obligations when settling trades in the market. Muqassa’s offering further strengthens market infrastructure and increase its operational efficiency.
Wael Abdullah Al-Hazzani brings a wealth of knowledge in the capital markets, risk management, clearing and settlement. Wael has occupied many leading positions within the Saudi Exchange Company (Tadawul), including heading the clearing and settlement function along with the Post-Trade Transformation Program.
In May 2018, Tadawul announced the establishment of the Securities Clearing Center Company (Muqassa), in addition to the appointment of Wael Al-Hazani as the Chief Executive Officer. Wael is a member of the Board of Directors of the Security Depository Center Company (Edaa).
Wael holds a Master of Business Administration (MBA) Minor in Finance and a bachelor’s degree in Computer Science from King Saud University, Saudi Arabia.