Saudi Exchange, Muqassa launch structural derivatives market upgrades

The Saudi Exchange and Securities Clearing Center Co. (Muqassa) have launched a series of structural enhancements to Saudi Arabia’s derivatives market, marking the next phase in its development.

The enhancements are aimed at supporting liquidity, improving market efficiency, and encouraging broader participation in derivatives trading, the two companies said in a joint statement.

The measures are part of Saudi Tadawul Group’s ongoing efforts to develop the Saudi capital market in line with the Financial Sector Development Program under Vision 2030. The coordinated upgrades to trading and clearing infrastructure are intended to support the activation of the derivatives market and strengthen its overall functionality.

The enhancements took effect on Aug. 19 and apply to MT30 Index Futures and Single Stock Futures (SSFs). They include measures aimed at deepening the market, attracting a broader range of participants, and improving overall market efficiency.

The measures include a revised market-making framework with strengthened obligations and competitive incentives aligned with international best practices to support consistent pricing and liquidity.

Transaction fees for MT30 Index Futures and SSFs have also been reduced across trading, clearing, and regulatory charges, while final settlement fees have been lowered.

Saudi Exchange has introduced a full waiver of futures transaction and final settlement fees for one year to encourage early participation and activate the market. Muqassa has also introduced fee waivers covering additional segregated accounts and give-up/take-up services.

The companies have also updated the specifications of SSFs, including increasing the tick value, removing the margin multiplier, and revising the daily settlement price methodology in line with international best practices.

Margin levels have undergone a comprehensive review, with enhanced margin netting available across maturities and futures products to improve capital efficiency. Muqassa has also launched a margin calculator on its website to help members understand margin requirements across all listed derivatives products.

Saudi Exchange and Muqassa have implemented FIS connectivity solutions to support the trading and clearing of exchange-traded derivatives in the Saudi capital market. The solution provides real-time visibility into transactions, collateral positions, and margin monitoring through integrated digital platforms in collaboration with FIS, improving back-office efficiency and operational transparency.

The coordinated enhancements by Saudi Exchange and Muqassa mark a significant milestone in the development of Saudi Arabia’s derivatives market, strengthening its commercial appeal, increasing investor confidence, and laying the foundation for sustainable long-term growth.

As part of the latest phase, Saudi Exchange signed agreements with SNB Capital on behalf of several derivatives market makers to support liquidity provision in futures contracts. Participating firms include Corvus, Binevenagh, BLS Futures Ltd, Eighteen Eight Solutions, and MET Traders.

Market-making activity began in August 2026, supporting the initial phase of liquidity provision in the derivatives market.

“Building a more advanced and globally connected financial system is a core objective of the Financial Sector Development Program under Vision 2030, and a functioning derivatives market is a fundamental part of that ambition,” Mohammed Al-Rumaih, CEO of Saudi Exchange, said.

He said developing the derivatives market was a core strategic priority for Saudi Exchange and central to its efforts to serve market participants and strengthen the infrastructure of the Saudi capital market.

“This development marks a significant milestone for the Saudi financial market, with Muqassa further strengthening its role in delivering central counterparty services through a fully regulated framework,” Muqassa CEO Wael Al-Hazzani said.

He said the company’s enhanced risk management capabilities, including margin optimization and integrated clearing services, would enable it to continue advancing Saudi Arabia’s financial market infrastructure in line with leading international standards.

The enhancements are expected to support increased participation in MT30 Index Futures and SSFs as the companies move into the next phase of the derivatives market roadmap, which includes expanding into options products.