Press Release Detail

RIYADH – 25 November 2024 – Saudi Tadawul Group, a leading diversified capital markets group in the MENA region, announced today the successful implementation of a second phase of post-trade enhancements, aimed at strengthening market infrastructure and increasing efficiency. The new enhancements have been rolled out across three of Saudi Tadawul Group’s subsidiaries: the Saudi Exchange, Securities Clearing Center Company (Muqassa), and Securities Depository Center Company (Edaa).

Wael Al Hazzani, Program Director of the Post Trade Transformation and CEO of Muqassa said: " Building on the success of the first phase, the rollout of the second bundle of post-trade enhancements is a pivotal moment for the Saudi capital market, the largest enhancements in the history of the Saudi capital market. These new enhancements are designed to improve the experience for stakeholders with the Saudi Exchange, Edaa, and Muqassa. These enhancements will also contribute to diversifying our offerings and expanding investment opportunities for both local and international investors. This reinforces our commitment to providing a more efficient, transparent, and secure post-trade infrastructure for investors and issuers, ultimately strengthening the Saudi capital market's position as a leading global financial hub.”

The Saudi Exchange has introduced enhancements for the derivatives market and market making. The second phase enables market makers and high-frequency traders to benefit from the same trading functionalities in both cash and derivatives markets, enhancing liquidity and market efficiency. These changes unify market microstructure elements and improve transparency. They align the Saudi Exchange with best-in-class peers globally, reinforcing its position as a global market leader and attractive investment destination.

Muqassa is introducing post-trade enhancements, aligning with global Central Counter Party clearing house (CCP) best practices. The changes aim to improve operational efficiency, reduce costs and increase transparency while trading on the Saudi Exchange. These enhancements streamline the reconciliation process and enable real-time trade reconciliation. Enhancements in trading limits for derivatives and covered call margining increase efficiency for market members, ensuring robust and secure handling of post-trade activities, with this development, Muqassa will join an elite group of CCPs worldwide that operate a single, multi-asset clearing engine. 

Edaa has upgraded its post-trade infrastructure with enhancements to messaging protocols and reporting processes. These improvements, aligned with international standards, elevate the experience for capital market institutions, custodians, settlement agents, and investors. The changes bolster market efficiency and stability through improved governance, creating a seamless and secure post-trade environment that attracts both domestic and international investors by aligning with global best practices.

The implementation of these enhancements is part of the Group’s efforts to develop the Saudi capital market and reinforce its position as a globally attractive investment destination in line with the goals of the Financial Sector Development Program.

To learn more about all the market infrastructure enhancements please click here 

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