MSX Introduces CCP Clearing Model and Securities Lending: What This Means for Investors and Businesses in Oman
Qasim Al Maashani
Muscat, February 22
The Muscat Stock Exchange (MSX) is advancing plans to introduce a central counterparty (CCP) clearing model, alongside securities lending and borrowing mechanisms, as part of its 2026–2027 roadmap aimed at overcoming a major barrier limiting foreign investment allocations.
In an exclusive interview with the Observer, MSX CEO Haitham bin Salim al Salmi explained that the primary challenge is not investor interest but rather the “institutional allocability” — the capacity of large global funds to invest in a market that satisfies benchmark criteria, liquidity demands, and post-trade infrastructure requirements.
Al Salmi highlighted that large investment mandates typically need adequate liquidity depth, index eligibility, a robust post-trade system, and the capacity to execute significant trades without causing undue price disruption.
To meet these requirements, MSX is developing a CCP clearing model that will function as an independent entity distinct from the depository company. This initiative aims to enhance risk management and align the market with international best practices.
Furthermore, MSX is working on securities lending and borrowing frameworks. Al Salmi noted that as these structural improvements take shape, barriers to foreign capital allocation will decrease, enabling the market to evolve from an “opportunity set” into a strategic portfolio allocation destination.
Regarding market listings, Al Salmi stated that expanding the investable universe remains a strategic priority. However, decisions related to government divestments and privatizations are made by the Oman Investment Authority and relevant stakeholders. MSX’s role focuses on operating the regulated marketplace, facilitating listings, trading, and price discovery in accordance with international standards.
Over the coming 12 to 24 months, MSX anticipates ongoing listing activity aligned with the national economic agenda, with special attention to governance and ensuring free-float levels that encourage active trading and institutional participation.
Additionally, the exchange is developing the Promising Companies Market as a channel for firms seeking capital market funding. Al Salmi emphasized that the goal is not merely to increase the number of listings but to enhance their “investability” and their contribution to market depth and transparency.
On product development, Al Salmi explained that MSX is prioritizing market depth and resilience before introducing complexity. The exchange is working to broaden its fixed income offerings, including bonds and sukuk, to diversify funding sources and attract various investor classes.
Exchange-traded funds (ETFs) will be launched once liquidity reaches a “sufficient critical mass,” while derivatives remain a longer-term prospect, contingent on market maturity and liquidity stability.
Al Salmi framed these initiatives as part of a broader institutional consolidation phase, anticipating that capital markets will play an increasingly important role in financing Oman’s economy in line with Vision 2040.
Special Analysis by Omanet | Navigate Oman’s Market
The Muscat Stock Exchange’s roadmap to implement a central counterparty (CCP) clearing model and securities lending mechanisms by 2026–2027 signals a transformative shift toward enhanced market liquidity, risk management, and institutional appeal. For businesses and investors, this means Oman is positioning itself to attract substantial global capital inflows by meeting international benchmarks, creating opportunities for deeper capital market participation and diversified funding sources. Smart investors and entrepreneurs should consider aligning with these structural reforms to leverage emerging strategic portfolio allocations and the expanding investable universe under Oman Vision 2040.
