January 17, 2019      
Last Data Update:16/01/2019

Clearing and Settlement

Definition

The clearing and settlement system means identifying rights and obligations resulting from securities trading, covering the financial positions resulting from these transactions and effecting the relevant discount and addition as required.
  • Objectives of settlement and clearing system in Muscat Securities Market.
  • Reducing risks associated with receipt and delivery of securities as well as the cash values for transactions executed by securities intermediaries.
  • Executing the clearing and settlement transactions and transfer of securities ownership within a specified time frame.
  • Speed up securities turnover as a result of guaranteeing settlement within a specified timeframe.
  • Attracting foreign investors through adopting the international standards and applying the Delivery versus Payment system (DVP), and ensure that all dealers get their rights at scheduled times.
  • Provides credibility and confidence to dealers in the market in General
 
Settlement cycle in the market

Muscat Clearing & Depository (clearing and settlement department) holds the procedure of clearing and settlement to determine the net equity and members and complete the procedures for settling financial centres arising from transfer of property, as follows:
 
  • (T + 2): Ending the settlement period for securities traded on the second day after day trading for bonds.
  • (T + 3): Ending the settlement period for securities traded on the third day after day for equities trading.
Or as adopted from time to time by the capital market authority in determining settlement periods (equity/Securities /bonds and other financial instruments.
 
 
 
Timing of the settlement cycle

Cash settlement takes place at exactly at 1:00 p.m. through RTGS system Real-time gross settlement associated with the Central Bank of Oman`s system through (add / discount) from and to settlement account at the Central Bank of Oman and Commercial bank accounts related to brokerage company, while the equity settlement proceedings are at 17 (1:15) p.m. permanently through discount stock from vendor accounts and add them in accounts of buyers.
 
Or as per adopted from time to time by the authorities party 
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