Muscat Clearing & Depository Company (MCD) has announced the implementation of a T+2 settlement cycle for securities traded in Oman’s capital market, reducing the current settlement period from three business days (T+3) to two business days following the trade date.
The move marks a significant milestone in the development of the Sultanate’s capital market infrastructure and aligns Oman’s post-trade framework with widely adopted international standards.
Effective from the trading day of 1 September 2026, the new settlement cycle will apply to all transactions executed on the Muscat Stock Exchange, covering equities, bonds, sukuk, and funds.
MCD said the transition has been developed in coordination with regulators and market participants following extensive operational and system readiness preparations.
The initiative is aimed at enhancing the efficiency and resilience of post-trade processes, reducing counterparty and settlement risks, and improving liquidity in the market.
By shortening the settlement timeline, investors will be able to access funds more quickly, enabling faster capital redeployment and potentially supporting increased trading activity.
MCD noted that the shift also supports efforts to strengthen Oman’s appeal to regional and international investors by aligning with global best practices in securities settlement.
The change is expected to improve operational efficiency for brokers, custodians, clearing members, and other financial institutions operating in the market.
Mohamed bin Said Al Abri Chief Executive Officer Muscat Clearing & Depository Company
“The implementation of the T+2 settlement cycle comes after the approval of the legal framework by the Financial Services Authority, along with extensive coordination with brokers, custodians, clearing members, financial institutions, and investors. MCD has taken into account the regulatory aspects related to the settlement of custodian client transactions, particularly the Delivery versus Payment (DVP) procedures, taking into account time zone differences and the varying opening hours of financial markets. By enabling faster settlement, the T+2 cycle will accelerate capital turnover, increase trading activity and market liquidity, and reduce margin requirements and operational costs.”
The company added that it will continue monitoring global developments in clearing and settlement practices, including the shift toward shorter cycles such as T+1, as part of its long-term modernization roadmap.
