Tradeweb Markets Inc. (NASDAQ:TW), a global operator of online markets for interest rates, credit, equities and money markets, today announced the successful launch of its Alternative Trading System (ATS) for the execution of Sukuk and Saudi Arabian Riyal (SAR) securities in the Kingdom of Saudi Arabia.
Licensed by the Capital Markets Authority (CMA), the platform facilitated the initial transaction between BlackRock and BNP Paribas, with a subsequent transaction between BlackRock and Goldman Sachs.
Billy Hult, CEO of Tradeweb, said:
“We are grateful for the trust placed in us by the CMA to exclusively deliver the first electronic ATS bond to the Kingdom of Saudi Arabia. The introduction of SAR bonds to Tradeweb’s electronic multi-asset platform marks not only a technological milestone, but also a fundamental moment for the structure of the fixed income market in the Kingdom, setting the stage for greater international participation.”
Enrico Bruni, Co-Head of Global Markets at Tradeweb, added:
“Tradeweb has a long history of providing transparent, efficient trading solutions to markets around the world, and our entry into Saudi Arabia builds on that momentum. By combining local market insight with global trading workflows, we are solving persistent challenges around post-trade workflows and global investor access, helping to support the next electronic phase of the SAR market”.
The CMA has selected Tradeweb to build and operate the Kingdom’s first regulated electronic bond market infrastructure following a competitive tender process in the 1st quarter of 2024. The initiative reflects the country’s broader strategy to deepen capital markets, attract global investment and subsequently drive economic growth in Saudi Arabia. Last month, Saudi Arabia was added to the JP Morgan EM Bond Index watch list, in a move expected to attract about $5 billion in initial foreign inflows.
Raed AlHumaid, CMA Deputy Market Institutions, said:
“In line with the CMA’s role in the development of the Kingdom’s capital market, the CMA welcomes the launch of the Tradeweb-operated ATS for Sukuk and debt securities. This is an important step in strengthening the secondary market for debt securities, while broadening the investor base and broadening the range of products available in the Saudi capital market. Enriching access to market, enhancing transparency and strengthening post-trade infrastructure will contribute to this initiative.”
ATS is part of Tradeweb’s global emerging markets (EM) multi-asset platform, which supports more than 20 currencies in cash and fixed income derivatives markets. The addition of SAR bonds to the platform further expands Tradeweb’s EM footprint covering Asia Pacific, Central and Eastern Europe, the Middle East and Africa and Latin America.
Tradeweb ATS operates under CMA supervision and is designed for professional investors, in accordance with local and global market standards. Key benefits for users include protocol diversification, alignment with local trading conventions, as well as continued flexibility for potential future product expansion into corporate bonds, repurchase agreements and derivatives markets, subject to regulatory consent from the CMA. Eligible customers can access the full SAR offering alongside existing EM currencies available on Tradeweb.