The Capital Market Authority (CMA) announced on Wednesday the official linking of the Muscat Stock Exchange (MSX) with Euroclear, a major international clearinghouse. It follows the signing of an agreement between the Muscat Clearing and Depository Company (MCD), a subsidiary of MSX, and Euroclear, one of the world’s largest providers of domestic and cross-border settlement and related services for bond, equity, ETF and mutual fund transactions.
The agreement aims to facilitate the procedures of international investors who have accounts with Euroclear in all local government and private sukuk and bonds listed on the Muscat Stock Exchange that are compatible with the requirements of the Eurobond issuance. It will also enable investors registered with the Muscat Clearing and Depository Company to invest in all markets. Global financial services linked to the Euroclear network worldwide can be accessed through the Euroclear account without the need to open new accounts for them in those markets.
This step contributes to expanding the scope of international access to the Muscat Stock Exchange, attracting additional capital, and working to enhance the diversity of the investor base in the stock exchange and increase its efficiency, said Shaikh Abdullah bin Salim al Salmi (pictured), CEO of the Capital Market Authority.
He added that the agreement is part of ongoing efforts to enhance and develop the capital market in the Sultanate of Oman and enhance connectivity with the global financial markets, with a desire to attract more foreign capital and encourage the dual listing of local and those Omani securities issued and listed on external financial markets.
The linkage will enable external investors to own the securities listed on the Muscat Stock Exchange through their accounts with Euroclear without the need to open accounts directly with the Muscat Clearing and Depository Company, thereby offering convenience and time savings as well.
Al Salmi noted that the agreement will contribute, in the initial stages, the development and revitalisation of the Omani debt instruments market, which represents one of the objectives of the strategy approved by the Capital Market Authority. Cooperation with Euroclear during this initial phase is expected to enable full access to international investors who have accounts with Euroclear, allowing them to invest and trade in all securities listed on the Muscat Stock Exchange, not just debt instruments.
Mohammed Abdulhadi, Acting General Manager of Muscat Clearing and Depository Company, said this cooperation will enable MCD to be the focal point for Euroclear transactions in the Sultanate of Oman.
Bernard Ferran, General Manager of Euroclear Bank Operations in Europe, Middle East and Africa, said the opening of a Euroclear account in the Sultanate of Oman will enhance and raise the efficiency of cross-border transactions and settlements of securities. (With inputs from ONA)
Caption: CMA CEO
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