Fsdp Quarterly Newsletter Q1 2025 · Page 8

 
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The Capital Market Authority Surveys Public Views on 
the Regulatory Framework for Clearing Agreements for 
Capital Market Institutions 
The Capital Market Authority (CMA) invites the general 
public interested and concerned and participants in the 
capital market to express their views on the draft 
regulatory framework for clearing agreements for capital 
market institutions, for a period of 30 calendar days. The 
proposed provisions of the project regulate the default of 
one of the parties to the clearing agreement, or in the 
specific cases mentioned in the proposed regulation, 
provided that one of the parties to such contracts is a 
capital market institution, in order to regulate those 
agreements and the financial guarantee arrangements 
related to them, which are linked to one or more 
qualified financial contracts that fall under the scope of 
the regulatory authority, to ensure their enforcement on 
all its parties in the event of any change in any of the 
cases in which the qualifying financial contract was 
concluded, which It will contribute to enhancing the 
stability and sustainability of the financial sector in the 
Kingdom and the capital market system. The main 
objective of the project is to enhance the stability of the 
financial system and protect investors, in order to ensure 
the enforcement of qualified financial contracts in which 
one of the parties is a capital market institution in the 
event of default of either of them, and in a way that 
preserves the rights of all parties, in accordance with the 
provisions contained in the clearing agreement concluded 
between the two parties. 
The Capital Market Authority Calls for Public 
Consultation 
on 
the 
Development 
of 
Investor 
Categories in the Parallel Market and Enhance the 
Governance of Special Purpose Entities. 
The Capital Market Authority (CMA) called upon relevant 
and interested persons participating in the capital market 
to share their feedback on the draft "Development of 
Investor Categories in the Parallel Market", which 
includes proposed amendments to the categories of 
investors permitted to invest in the Parallel Market. The 
consultation period will last for 30 calendar days.  
The proposed draft aims to develop the investor 
categories in the Parallel Market – Nomu – by easing the 
criteria and requirements that investors must meet to be 
eligible to trade and invest in the market, which is 
expected to have a positive impact on the market. The 
key proposed amendments include revising the term 
"Qualified Investor in the Parallel Market" to refer 
exclusively to the categories eligible to invest in the 
market. The amendments also ease the criteria imposed 
on individual investors wishing to enter and invest in the 
Parallel Market. In addition, the proposed amendments 
include classifying the board members and members of 
the committees emanating from the board of directors in 
companies listed in the Parallel Market as qualified 
investors allowed to invest in the Parallel Market. 
The Capital Market Authority Calls for Public
Consultation 
on 
the 
Development 
of 
Investor 
Categories in the Parallel Market and Enhance the 
Governance of Special Purpose Entities. 
The Capital Market Authority (CMA) called upon relevant
and interested persons participating in the capital market 
to share their feedback on the draft "Development of 
Investor Categories in the Parallel Market", which 
includes proposed amendments to the catego