The Securities Depository Center Company (Edaa), a subsidiary of the Saudi Tadawul Group, has signed a Memorandum of Understanding (MoU) with Clearstream, Deutsche Börse Group’s international central securities depository. The partnership aims to jointly introduce new post-trade services to enhance the efficiency and attractiveness of the Saudi capital market for domestic and international investors.
This collaboration builds on Clearstream’s 2021 initiative providing its clients access to the Saudi market via Edaa. Leveraging its 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.
A key initial focus for the partnership is the joint development and launch of the Saudi Collateral Management Service (SCMS). This centralised, automated triparty collateral management system will be tailored to the Saudi market. It is designed to optimise financing activities for local financial institutions, increase market liquidity, and provide easier connectivity to international markets.
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