Muscat Clearing, Depository Launches ‘MCD Rulebook’ to Strengthen Regulatory Framework

Muscat: In a strategic move to bolster confidence in its operations and services, as well as to support the broader development of Oman's capital market, Muscat Clearing and Depository SAOG (MCD) has officially announced the approval and implementation of its Internal Regulatory Rulebook. According to Oman News Agency, the "MCD Rulebook" governs all of MCD's business activities and services provided to investors and stakeholders of the Muscat Stock Exchange (MSX), in accordance with Royal Decree No. 82/98 establishing MCD, and the regulatory framework set by the Financial Services Authority (FSA). The Rulebook serves as a comprehensive legal reference for all MCD's operations. It clearly defines the rights, obligations, and responsibilities of both MCD by promoting transparency and consistency across the capital market ecosystem. This initiative addresses key requirements previously raised by rating agencies and foreign investors, thereby strengthening legal certainty and promoting fairness within Oman's capital market. Developed in collaboration with a leading international consultancy specialized in clearing and settlement services, the Rulebook reflects international best practices and adheres to Royal Decree No. 46/2022 (Securities Law). It also forms a core component of MCD's Five-Year Strategy (2024-2028) and supports the national objectives outlined in Oman Vision 2040. The 'MCD Rulebook' includes general provisions governing services, operational workflows, roles and responsibilities, dispute resolution, liability, and indemnification. It also sets out detailed criteria for MCD membership, the use of the Central Securities Depository (CSD) system, securities account management, record-keeping of the central registry, pledges and liens, collateral management, and enforcement mechanisms. In addition, it provides a detailed guide to all clearing, settlement, depository, and corporate action services, as well as the recently launched Securities Lending and Borrowing (SLB) framework. Mohammed Al Abri, C EO of MCD, stated: 'MCD's services have seen substantial advancement in recent years, particularly with the adoption of digital technologies and the introduction of new services that enhance market efficiency and attract foreign investment. The new Rulebook reinforces our commitment to transparency, professionalism, and effective communication with all stakeholders. For the first time, all relevant regulatory provisions are consolidated into a single, accessible document that will serve as the authoritative reference for our operations. We also encourage stakeholders and market participants to provide feedback through our official channels, helping us continuously enhance our services.' The development of the 'MCD Rulebook' involved extensive consultation with key stakeholders, including the FSA, Muscat Stock Exchange (MSX), Ministry of Finance, Central Bank of Oman, brokerage firms, custodians, listed companies, and investment institutions. The 'MCD Rulebook' is available in both Arabic and English on the company's official website and will undergo periodic review to incorporate new regulations, services, and market requirements. This initiative underscores MCD's commitment to regulatory transparency, market resilience, and proactive stakeholder engagement in advancing Oman's capital market.