Brief about the Importance of settlement guarantee fund

• Commitment to complete the settlement of all operations of the members of the Security Fund on the settlement schedule.

• Cover the risks resulting from the lack of commitment by the companies (members of the Fund) the settlement of operations carried out either in cash or paper-based processes.

• ensure that members of the financing system of the circulation per day (SDT)

• Follow up any persons with disabilities may lead to failure to complete the settlement operations in the schedule and work to overcome them and solve them.


• provides credibility and confidence in the mediation of the activity of the stock market.

Risks covered by the Fund

• lack of commitment by members to pay the value of the securities purchased.

• Lack of commitment by members to turn over or transfer of securities sold.

Positive role for the Fund to ensure that adjustments

First: for the investors
And a Settlement Guarantee Fund to ensure that each investor of the seller or the buyer fully settlement operations done by the time specified, if the investor has to issue a warrant for the sale of securities in a particular day was the implementation of this process, the value of securities in the account will be present at the time, regardless of the commitment the buyer paying the median value in the schedule, as well as the buyer to the investor, the existence of a fund to ensure that adjustments to ensure a transfer of ownership of securities by the issuance of purchase orders and carried out this process in a timely fashion.


Second: for brokerage firms
The existence of a fund to ensure that the adjustments have a positive role in increasing the turnover rate of securities, and that as a direct result of all its members access to all of their entitlements in the same settlement day schedule without any delay, because the Settlement Guarantee Fund is to pay all obligations of its members in the event of failure to pay, and this is for the benefit of the brokerage firms through the provision of Settlement Guarantee Fund of the credibility of and confidence in the mediation of the activity in the market.


III: For companies exporting
Increasing the volume of transactions and make sure the output of the dealers for the Fund to ensure the completion of all adjustments in a timely manner as well as to encourage foreign investment supports the development of the exporting companies of the Stock Exchange, and provide guaranteeing source of funding to expand its activities and increase the size of work.