Manama, Jan. 26 (BNA) Bahrain Clear, a wholly owned subsidiary of Bahrain Bourse, has signed a Memorandum of Understanding with the Clearing Company, the Securities Clearing Center in the Kingdom of Saudi Arabia wholly owned by the Saudi Tadawul Group. The agreement was signed by Sheikh Khalifa bin Ibrahim Al Khalifa, Vice Chairman and Managing Director of Bahrain Clear, and Wael Al Hazani, CEO of the clearing company.
The memorandum of understanding seeks to enhance the exchange of information and experiences in order to develop the central clearinghouse in both countries, as well as to explore opportunities for cooperation regarding the development of the central clearinghouse and training services.
Sheikh Khalifa bin Ibrahim Al Khalifa, Vice Chairman and Managing Director of Bahrain Clear, commented on this occasion: “This MoU clearly defines the goal and purpose of our cooperation and establishes a formal channel for information exchange, expanding the cooperation area in terms of business development and innovation. The MoU will encourage initiatives for more practical cooperation, which will lead to significant benefits for both exchanges, including efficiency that leads to enhanced liquidity.”
Sheikh Khalifa added, “We look forward to working with Muqassa to enhance connectivity across borders and financial ecosystems in Bahrain and Saudi Arabia, and to further intensify the strong bilateral relations between the two kingdoms.”
Wael Al-Hazani, CEO of Clearing Corporation, stated that “Bahrain Clearing and Clearing Company shares the privilege of satisfying our capital markets industries, and we both recognize the importance of this role, which prompted us to start our collaborative efforts. This MoU is a true testament to our mutual dedication to promoting a fair and competitive business environment. In addition, this agreement lays the basis for effective cooperation between the clearinghouse and Bahrain Clear to explore training opportunities and various development areas in the field of securities depository with the aim of creating new opportunities to achieve mutual benefits for both parties and achieve the objectives of the memorandum of understanding. . “
It should be noted that the MoU is in line with the joint efforts of the GCC countries to strengthen the link between the systems and institutions in the capital markets sector.
Bahrain Clear was established in June 2017 as a clearing house licensed by the Central Bank of Bahrain. Bahrain Clear is a wholly owned subsidiary of Bahrain Bourse with a disclosed capital of 5 million dinars and a paid-up capital of 1 million dinars. Bahrain Clear provides pre- and post-trade services to investors in addition to a range of services including transaction filing, clearing, settlement, central registration and registration.
The Securities Clearing Center Company (Muqassa) was established in 2018 as a closed joint stock company wholly owned by the Saudi Tadawul Group, with a capital of (600,000,000 Saudi riyals). Clearing will contribute to reducing post-trade risks, providing a centralized management of counterparty risks, and developing clearing services in accordance with international practices to align with developed global capital markets, which in turn will attract investors to the market.