Clearstream and Edaa sign Memorandum of Understanding to set up cross-border link to Saudi Arabia

03.02.2020

Securities Depository Center (Edaa), the post-trading services provider of the Saudi Stock Exchange (Tadawul), and Clearstream, the post-trading services provider of Deutsche Börse Group, have signed a Memorandum of Understanding (MoU) to facilitate access to capital for domestic and international investors in the Kingdom of Saudi Arabia through cross-border links.

The initiative driven by market demand aims to connect international investors to the Saudi Arabian debt market through the Clearstream platform, boosting liquidity and fostering a wider range of sources of long-term funding for the domestic economy. 

Mamdooh Al Sedairy, CEO of Edaa, said: “We have made significant market enhancements over the last two years, along with Tadawul and the Saudi Capital Market Authority, to bolster the Saudi capital market’s positioning as a world-class stock exchange from both a technology and infrastructure perspective. This MoU with Clearstream will support Edaa in further strengthening its services and enhancing international investors’ access to the Saudi debt market by facilitating a single liquidity pool for debt.”

Jan Willems, Head of Global Markets at Clearstream, commented: “We look forward to connecting with Edaa to provide our network access to the Saudi debt market. International investors will have the opportunity to enter this attractive market via an established post-trading environment complying with Saudi Arabian regulatory and reporting standards.” 


About Clearstream:
As an international central securities depository (ICSD), headquartered in Luxembourg, Clearstream, which is part of Deutsche Börse Group, provides the post-trade infrastructure for the Eurobond market and services for securities from 58 domestic markets worldwide. With around 14 trillion Euros in assets under custody, Clearstream is one of the world’s largest settlement and custody firms for domestic and international securities. 
www.clearstream.com

About Edaa:
The Securities Depository Center Company (“Edaa”) was established in 2016 and is fully owned by the Saudi Stock Exchange (Tadawul). “Edaa”, operates and maintains the Depository and Settlement System (DSS) to record and maintain securities and register the ownership of securities. It aims to enhance the efficiency of securities deposit and registration services, in alignment with Saudi Vision 2030 objectives, through developing a more resourceful environment that fosters excellence within all sectors related to the capital market.
www.edaa.com.sa