Nasdaq signs deal to modernise Saudi's stock exchange

Nasdaq and Tadawul have agreed to replace 17-year old registry, depository and risk management technologies used in the kingdom
The Saudi Arabia's stock exchange, Tadawul, has signed an agreement with Nasdaq to enhance its post-trade technology infrastructure including its aging registry, depository and risk management technologies, it was announced on Monday.
By Bernd Debusmann Jr
Mon 04 Dec 2017 12:08 PM

The Saudi Arabia's stock exchange, Tadawul, has signed an agreement with Nasdaq to enhance its post-trade technology infrastructure including its aging registry, depository and risk management technologies, it was announced on Monday.

The new technologies, which will replace existing solutions, which were first implemented nearly 16 years ago in 2001, will be installed by the second half of 2020.

According to Nasdaq, the transformation will enable Tadawul and market participants to introduce new asset classes to the market, and will increase the efficiency, effectiveness and growth of the market.

“We are very keen on investing in cutting-edge technologies to offer a fast and efficient Post Trade platform,” said Tadawul CEO Khalid Abdullah Al Hussan.

“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, the president and CEO of Nasdaq, said that Tadawul “is not only admirable, but inspiring” to the entire industry.

“By addressing the demand to overhaul, modernize 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,” she added.

Tadawul – the 26th largest stock market in the world – comprises 48 percent of total GCC market capitalisation and 73 percent of value traded. It is the sole entity operated to list and trade securities in the kingdom.

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