FEAS Yearbook FEAS Yearbook 2002 | Page 67

FEDERATION OF EURO-ASIAN STOCK EXCHANGES > YEARBOOK 2002/2003 > PAGE 65 MUSCAT SECURITIES MARKET LETTER FROM THE DIRECTOR GENERAL The MSM is now working toward setting up an efficient settlement system for securities transactions. During 2002 the Muscat Securities Market (MSM) witnessed significant achievements, which positively affected Exchange transactions and activities of the MSM in general. Various legal reforms have been made, particularly the amendments in the Commercial Companies Law. However, as part of its continuing efforts to strengthen the legal framework within which the commercial companies operate in Oman, and in order to protect the interests of various shareholders, the government has amended the Commercial Companies Law (CCL) effective 1 October 2002. The MSM is now working toward setting up an efficient settlement system for securities transactions. To this effect a third party settlement bank, for instance, is proposed to be involved in the settlement cycle to net and settle all trading transactions. trading system applications and consequently support true fault tolerance with automatic fail over capabilities, disaster recovery which guarantees system availability, additional processing power, and scalability. We hope that during 2003 we will continue to implement an active policy for attracting domestic and foreign investors. The MSM has recently improved its computer systems to enhance the performance of Ahmed Salih Al-Marhoon Registration of Securities Company (SAOC) as a private company jointly owned by the brokerage companies and the MSM. The government of Oman has adopted comprehensive reformatory polices for enhancing the transparency and flow of foreign investments. Director General HISTORY AND DEVELOPMENT The Muscat Securities Market (MSM) was established by Royal Decree No. 53/88 issued on 21 June 1988. In 1998 the Capital Market Law was adopted, thus restructuring the MSM into two separate entities: the Capital Market Authority (the regulatory body) and the Muscat Securities Market (the Exchange). Royal Decree No. 82/98 was issued in November 1998 establishing the Muscat Depository & The MSM is owned by the government of the Sultanate of Oman, but has its own financial and administrative rules and regulations. The MSM is governed by an independent board of directors, consisting of seven members: four elected and three appointed. FUTURE OUTLOOK The MSM outlook for 2003 is as follows: establishment of a brokers’ association; enhancement of the features and efficiency of an electronic trading system; redesign of the market website to be more dynamic; development of an integrated clearing and settlement system; enhancement of the principles of disclosure and transparency; and updating of the listing regulations with the goal of ensuring greater quality in listed companies.