Saudi Stock Exchange Upgrades Systems
The upgrade will enable market members to provide new categories of securities and services to investors
The Saudi Stock Exchange (Tadawul) has announced an agreement with Nasdaq to develop new clearing and settlements systems.
The deal will see the current Tadawul registration, filing and settlement system replaced by a central clearing system.
The exchange said this would enable market members to provide new categories of securities and services to investors.
It will also increase the efficiency of the market and reduce the risk of clearing and settlement processes, according to the announcement.
The new system is expected to be in place by 2-H of Y 2020.
The announcement comes as the Kingdom continues to undertake stock market reforms designed to attract foreign investors.
As part of these efforts the Kingdom is aiming to be upgraded to the emerging market indices of Key index compilers in the coming years including FTSE Russell and MSCI.
In October, the market regulator announced plans to loosen rules for licensing asset management and other investment firms and said it would allow foreign investors to take larger strategic stakes in Saudi-listed companies.
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