The Muscat Securities Market (MSM, ) is the only stock exchange in Oman. It 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 organisations 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. Thus MSM has been restructured by two Royal Decrees (80/98) and (82/98). History The Royal Decree (80/98) dated 9 November 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 Market has developed its existing system of clearance and settlement, by introducing a new mechanism for ensuring stable dealings in securities, as well as providing a better environment attracting foreign investment into Oman. 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 brokers. The newly introduced settlement formula is through a settlement bank (Central Bank) with a Settlement Guarantee Fund (SGF)., established with the contribution of all intermediary companies. The Muscat Securities Market is a member of the Federation of Euro-Asian Stock Exchanges. Market classification The regular market has strict listing requirements. For listing on this market, companies must have a solid record of profitability. There exists also a parallel market with relatively fewer requirements, and is therefore easier for companies to list on, especially the newly established ones. There is a third market consists of companies that are facing financial difficulties. Legislative structure From its inception, Muscat Securities Market has issued instructions and regulations as required to ensure that it attains its objectives and performs its duties and responsibilities with the utmost efficiency and fairness, and in conformity with a technical platform of the new electronic trading system, with intensive working on solid infrastructure enabling trading through the Internet. MSM-30 index The Muscat Securities Market Index was established in 1999, and the base date was June 1990. The number of companies included in the index sample has changed over time to reach currently 30 companies, the most liquid in the