The Muscat Securities Market (MSM) was established by the Royal Decree (53/88) issued on 21 June 1988 to regulate and control the Omani securities market and to participate, effectively, with other organizations for setting up the infrastructure of the Sultanate’s financial sector.
After ten years of continuous growth there was a need for a better functioning of the Market. The MSM has been restructured by two Royal Decrees (80/98) and (82/98(.
The Royal Decree (80/98) dated November 9th 1998 which promulgated the new Capital Market Law provides for the establishment of two separate entities, an exchange, Muscat Securities Market (MSM) where all listed securities shall be traded and the Capital Market Authority (CMA) – the regulatory. The Exchange is a governmental entity, financially and administratively independent from the regulatory but subject to its supervision.
The former settlement mechanism was involving only three parties in the clearance and settlement, MSM, Muscat Clearing and Depository Company (S.A.O.C) and the broker .The newly introduced settlement formula is through a Settlement Bank with a Settlement Guarantee Fund (SGF).
Until 1998, the MSM had been managing the exchange and acting as the central depository. Now, we are separating the Exchange and the Depository from the Regulator. Today we have three separate organizations, each with its own Board of Directors.
The Exchange (MSM) has maintains the previous name i.e. Muscat Securities Market. The Exchange exercises an important self-regulatory function over the brokers and the listed companies, in addition to continuing running the exchange and provides services to its members.