Clearstream has signed a memorandum of understanding (MoU) with The Securities Depository Center Company (Edaa), a subsidiary of the Saudi Tadawul Group, to jointly introduce new post-trade services in the Saudi capital market.
The partnership between the two central securities depositories (CSDs) is aimed at strengthening the efficiency and competitiveness of the Saudi post-trade ecosystem for both domestic and international participants.
It follows Clearstream’s earlier move in 2021 to connect its global client base to the Saudi domestic market via Edaa.
Under the collaboration, Edaa and Clearstream plan to develop a range of new services covering collateral management, securities lending and borrowing, fund services, and digital securities.
Hanan Alshehri, CEO of Edaa, said: “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.
An initial area of focus will be the Saudi Collateral Management Service (SCMS), a centralised domestic triparty capability designed to automate and optimise financing and collateral management activities within the Saudi capital market.
SCMS will facilitate greater operational efficiency for local financial institutions, support liquidity growth, and enable smoother connectivity with global markets.
The initiative represents a further step in the ongoing modernisation of Saudi Arabia’s market infrastructure, aligning with efforts to attract cross-border investment and strengthen the country’s role as a regional financial hub.
Sam Riley, CEO of Clearstream Securities Services, said: “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 Edaa to advance the local post-trade market’s infrastructure.”
Riley added: “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.”