The Saudi Tadawul Group aspires to be a world leading holding group that fosters the development of a diverse Saudi capital market and builds a bridge between global investors and regional economies. To achieve this vision, Saudi Tadawul Group aims to diversify its investment products and services in line with international standards and best practice.

The Post Trade Infrastructure Enhancements is one of the Group’s strategic programs that consists of multiple initiatives to enhance products and services infrastructure in the Saudi capital market, creating value for investors and the market in general. The Group’s main Post Trade Infrastructure Enhancements services are settlement as well as clearing and custody services.

The Post Trade Infrastructure Enhancements is an important step to support the development of the Saudi capital market in several areas by:

•  Facilitating the development of new and innovative products and services
•  Improving the Saudi capital market’s infrastructure to reduce systemic risks and enhance market efficiency
•  Contributing to market stability and ensuring seamless and secured post-trade activities through an improved governance and regulatory framework
•  Creating an attractive investment environment that is conducive to the needs of domestic and international investors
•  Increasing the attractiveness of the Saudi capital market among international investors by aligning it with international best practice

To facilitate Post Trade Infrastructure Enhancements’ transitional period, Saudi Tadawul Group will implement the Program over two phases in cooperation with the following main partners: Capital Market Authority (CMA), Saudi Central Bank (SAMA), Saudi Exchange, Securities Clearing Center Company (Muqassa), Securities Depository Center Company (Edaa), and market participants to ensure market readiness among all relevant parties.

Furthermore, the following initiatives have been completed as part of Post Trade Infrastructure Enhancements:

2017

•  Security Depository Center Company (Edaa) Spin-off
•  Change settlement cycle to T+2

2018

•  Establishment of the Securities Clearing Center Company (Muqassa)

2021

•  Legal & Regulation changes

Planned over two phases, with first phase completed in 2022

•  Saudi Tadawul Group business model enhancements
•  Post Trade Technology transformation

This series of new enhancements supports the development of a sophisticated post-trade infrastructure and increases the securities services on the Saudi capital market for local and international market participants.