Market Link Guide - Saudi Arabia
CSD link as defined under CSDRa
Type of link
Indirect via The Hongkong and Shanghai Banking Corporation Limited acting through HSBC Saudi Arabia
a. CSD Regulation (EU) No 909/2014, Article 2(29).
Securities Depository Center Company (Edaa)
The Hongkong and Shanghai Banking Corporation Limited, acting through HSBC Saudi Arabia
Country of incorporation
Hong Kong via its branch in Saudi Arabia
Omnibus account under a foreign nominee structure
Legal account name/holder
Clearstream Banking S.A.
Clearstream Banking S.A.
Settlement free of payment
For NCBO transfers and new issues settlement
Settlement against payment
Eligible settlement currency:
Domestic instructions: Saudi Riyal (SAR) only
Internal instructions: All eligible settlement currencies
Settlement against payment in central bank money account of CBL/CBL customers
Against payment settlement takes place on the cash account of HSBC Saudi Arabia.
Partial settlement is possible in forced settlement and buy-in scenarios.
Settlement penalty fees
Refer to the Market Profile - Saudi Arabia.
Registration takes place automatically upon settlement.
Multi Market Securities
Lending and borrowing
Domestic/internal settlement only
Liquidity Hub Connect
Sale and purchase of rights
Internal Repo service (refer to CmaX Product Guide).
Customers and/or beneficial owners who are of Saudi Arabian nationality and/or residents of Saudi Arabia are not permitted as per local regulations.
Link eligible for use in Eurosystem credit operations
Moment of entry of instructions
At the time of orders reaching the Saudi Exchange.
Irrevocability of instructions
Trade orders sent to the Saudi Exchange are binding and irrevocable upon their execution.
Finality of instructions
Securities transfer into buyer’s account and cash credited into the account of the Settlement Member of the seller.
The below section is based on the legal opinions obtained by CBL that were issued on 26 May 2023. The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.
No insolvency proceedings against the custodian
Custodian’s liability for negligence
Book-entry regime with in rem rights at the custodian
Local law does not provide for a book-entry regime but does not prohibit it.
Recognition of nominee concept at the custodian
No right of retention for the custodian
Segregation of assets at the custodian
No right of use at the custodian
No upper-tier attachment at the custodian
Insolvency of the custodian with no impact on CBL's rights
Shortfall pro-rated among holders at the custodian
Shortfall shall be borne by the custodian
Record keeping of at least 10 years
The custodian has committed to record keeping period of at least seven years in accordance with the statutory law requirement in Hong Kong.
There is no general requirement under local law for the custodian to maintain records of its services or activities with respect to its custody business for a period of at least 10 years. The contractual obligation to retain records for seven years as provided in the Agreement would be recognised by a Saudi court.
Settlement finality if for insolvency at the custodian