Tradeweb has launched its alternative trading system (ATS), to facilitate the execution of Sukuk and Saudi Riyal (SAR)-denominated debt instruments within the Kingdom of Saudi Arabia.
Billy Hult
The ATS is licensed by the Capital Market Authority (CMA) and marks the first regulated electronic bond marketplace to be operated in the Kingdom, following a competitive tender process which took place in Q1 2024.
As part of the launch, BlackRock and BNP Paribas have executed the inaugural transaction on the platform, followed by a subsequent trade which took place between BlackRock and Goldman Sachs.
Billy Hult, chief executive of Tradeweb, said: “The introduction of SAR bonds to Tradeweb’s multi-asset electronic platform marks not just a technological milestone, but also a foundational moment for fixed income market structure in the Kingdom, preparing the ground for greater international participation.”
Specifically, the platform is set to support the Kingdom’s aim to build out the region’s capital markets, as well as attract further global investment and bolster Saudia Arabia’s economic development in general.
In addition, Tradeweb’s new ATS will allow users to access offerings such as protocol diversification, alignment with local trading conventions and flexibility for potential future product extension, alongside the existing emerging markets currencies currently available for Tradeweb clients.
“As Saudi Arabia continues to make great strides in developing its capital markets, fixed income opportunities hold great strategic interest for international investors,” said Yudhveer Chaudhry, global head of emerging markets, foreign exchange, commodities, and digital assets trading at BlackRock.
“This inaugural transaction on Tradeweb’s new alternative trading system, in collaboration with our global emerging markets debt team, not only marks a technological milestone for the Kingdom’s fixed income markets but also reflects our commitment to supporting innovative platforms that enhance global investor access and strengthen capital market infrastructure.”
The ATS launch follows further efforts from Tradeweb to build out its offering across global markets in recent months. In November 2024, the firm unveiled a collaboration with the Tokyo Stock Exchange (TSE) to expand liquidity in Japanese exchange traded funds (ETFs) through the launch of a new direct link.
Specifically, the link will be between Tradeweb and TSE’s RFQ platform CONNEQTOR.