Saudi Stock Exchange signs post-trade tech deal with Nasdaq

The exchange's technology overhaul is expected to be completed in the second half of 2020.

Nasdaq has agreed to revamp the Saudi Stock Exchange’s post-trade technology infrastructure, and will implement new registry, depository and risk management systems.

The deal also includes a renewal of Nasdaq’s trading and market surveillance technology for the exchange, with completion of the tech overhaul set for the second half of 2020.

The new technology will replace the Saudi Stock Exchange’s, also known as Tadawul, current registry, depository, clearing and settlement solution which has been in place for over 16 years.

With a new clearing solution, it will allow both Tadawul and market participants to introduce new asset classes for the Saudi market and offer new services to investors.

“This crucial step goes hand in hand with all the market enhancements we have undertaken to integrate securities trading in Saudi Arabia with global equity markets and enhance post trade infrastructure and efficiency for local and foreign investors,” said Eng. Khalid Abdullah Al-Hussan, CEO, Saudi Stock Exchange.

With its new post-trade technology in place, Saudi Arabia hopes to bring its market in line with Western standards, following the introduction of a T+2 settlement cycle earlier this year.

“By addressing the demand to overhaul, modernise and evolve its post-trade infrastructure, this demonstrates a clear vision by Tadawul to attract capital — both domestic and foreign — and present Riyadh as a major financial destination with best-in-class technology operating at its core,” added Adena Friedman, president and CEO, Nasdaq.