Securities Depository Center Company (Edaa), a subsidiary of Saudi Tadawul Group, and Clearstream, the international central securities depository of Deutsche Börse Group, have signed a Memorandum of Cooperation (MoU) to work together to jointly introduce new post-trade services to the Saudi capital market.
The collaboration between the two central securities depositories (CSDs) aims to enhance the efficiency and attractiveness of the Saudi capital market for both domestic and international investors. It builds on Clearstream’s 2021 initiative to provide its customers with access to the domestic Saudi market through Edaa. Leveraging its extensive global expertise, Clearstream will work with Edaa to advance local post-trade infrastructure and introduce new services, including collateral management, securities lending and borrowing, capital services and digital securities.
A key initial focus is the joint development and launch of the Saudi Security Management Service (SCMS). Tailored to the Saudi Arabian market, SCMS will provide a centralized, automated three-way collateral management system. It is designed to enable streamlined and automated financing activities for local financial institutions, increase liquidity in the Saudi Arabian market and provide easy connectivity to international markets.
Hanan Alshehri, CEO of Edaa, said:
“Our partnership with Clearstream marks a vital step in our efforts to enhance the overall efficiency and liquidity of the Saudi capital market. It is a testament to Edaa’s continued commitment to strengthening the Saudi market infrastructure in line with international best practices.”
Sam Riley, CEO of Clearstream Securities Services, added:
“Our partnership with Edaa is a key part of our commitment to connect global investors to emerging and dynamic markets. We are excited to partner with Edaa to advance local post-trade market infrastructure. By providing our global expertise, we aim to enhance market liquidity and efficiency by supporting market participants with sophisticated investment tools and their development.”