Al Rajhi Capital joins Saudi derivatives market with direct clearing access

Saudi Exchange announced Al Rajhi Capital’s admission as a derivatives member on 20 October. Securities Finance Times reported the following day that Muqassa, the Saudi securities clearing company, had welcomed the firm as a direct clearing member after it completed the regulatory and technical requirements.[1][2]

The trading permission covers brokerage and dealing as both principal and agent, according to the report. It gives Al Rajhi Capital scope to transact for its own account and for customers, with the new clearing relationship supporting that derivatives business.[2]

What direct clearing covers

The definitions reproduced in the Saudi Central Bank’s in-force rulebook distinguish a direct member from a general clearing member. A direct member can clear securities it trades as an exchange member for itself or its clients. Clearing for other exchange members without their own clearing membership belongs to the broader general-member category.[3]

That distinction matters for brokers considering a service relationship. Customer-facing derivatives execution and clearing for another brokerage are different businesses. Al Rajhi Capital’s direct status should therefore be read within its stated scope when assessing the additional routes available to customers and intermediaries.[3]

Clearing also performs a different function from matching an order. The rulebook describes a central counterparty as interposing itself between the trading parties. Bringing a direct clearing relationship into a broker’s operating model can give it closer control over how its own and client trades are processed, while the service’s practical value still depends on its implementation.[3]

Al Rajhi Capital’s head of securities, Mohammed Alkassem, presented the move as a way to improve integration and efficiency for clients, in comments reported by Securities Finance Times. The announcement provides a membership milestone; it contains no quantified savings, customer tariff or derivatives turnover against which to assess that ambition.[2]

Report an error or submit an update