The Securities Depository Center Company (Edaa), a subsidiary of the Saudi Tadawul Group, has entered into a Memorandum of Understanding (MoU) with Clearstream, the international central securities depository of Deutsche Börse Group.
The partnership aims to collaboratively introduce innovative post-trade services to enhance the Saudi capital market.
The collaboration between the two central securities depositories (CSDs) intends to enhance the efficiency and attractiveness of the Saudi capital market for both domestic and international investors.
Clearstream’s Commitment to Global Market Connectivity
It builds on Clearstream’s initiative in 2021 to provide its clients access to the Saudi domestic market via Edaa. Leveraging its extensive global expertise, Clearstream will work with Edaa to advance the local post trade infrastructure and introduce new services, including collateral management, securities lending and borrowing, fund services, and digital securities.
Sam Riley CEO – Clearstream Securities Services
“Our collaboration with Edaa is a key part of our commitment to connecting global investors with emerging and dynamic markets. We are thrilled to work with the company to advance the local post-trade market’s infrastructure. Providing our global expertise, we aim to boost market liquidity and efficiency, supporting market participants with sophisticated tools to meet their investment and growth ambitions.”
A key initial focus is the joint development and launch of the Saudi Collateral Management Service (SCMS). Tailored to the Saudi market, SCMS will provide a centralized, automated triparty collateral management system.
It is designed to enable optimized and automated financing activities for local financial institutions, increase liquidity in the Saudi market, and provide easy connectivity to international markets.
Edaa’s Commitment to Enhancing Saudi Market Infrastructure
Hanan Alshehri, CEO of Edaa, said that, “Our Partnership with Clearstream marks a vital step in our endeavors to enhancing 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.”
