https://arab.news/r4raw
RIYADH: Tadawul Group, operator of the Saudi exchange, said it intends to unveil the largest enhancements in the history of the Kingdom’s capital market.
This bundle of measures will be used to develop the post trade services infrastructure to be implemented on Apr. 3, the group said in a statement.
The new enhancements are introduced by three of Saudi Tadawul Group’s subsidiaries, namely the Saudi Exchange, Securities Clearing Center Co., known as Muqassa, and Securities Depository Center Co., or Edaa.
The Saudi exchange plans to introduce a more efficient handling of order flow by market participants, such as an enhanced mechanism for short selling activities. Other enhancements include buy-in trades executed at the exchange and settled on the same day.
Muqassa will clear services to cover equities, sukuk and bonds, and traded funds markets to facilitate the introduction of new products and services for clearing members.
Edaa aims to introduce a new central securities depository system and post-trade services, in alignment with international standards.
The move comes as it “intends to provide investors with increased investment opportunities and access to a diverse range of financial instruments and new products,” it added.
“The introduction of these market infrastructure enhancements will foster financial stability and integrity and strengthen the offering of our Group,” said Khalid Al-Hussan, CEO of Saudi Tadawul Group.
“Our aim is to provide local and international investors with a range of investment opportunities that benefit the Saudi economy and reinforce its position as an attractive global investment destination,” he added.