The Saudi Stock Exchange, Tadawul, has signed an agreement for Nasdaq to replace its post-trade technology infrastructure.
Nasdaq’s technology will replace Tadawul’s current registry, depository, clearing and settlement solution, which was implemented in 2001, and will support the existing trading and market surveillance technology.
Nasdaq will also introduce a new central counterparty clearing solution, allowing the exchange and other market participants to introduce new asset classes to the market.
According to Nasdaq, these changes will improve the efficiency, effectiveness and further growth of the market, and reduce risk in the post-trade area, in compliance with international standards.
Khalid Abdullah Al-Hussan, CEO of Tadawul, said: “We are very keen on investing in cutting-edge technologies to offer a fast and efficient post-trade platform.”
He added: “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."
Adena Friedman, president and CEO of Nasdaq, commented: “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.”
The technology upgrade is intended to be completed by late 2020.
