The Saudi Arabian stock exchange has tasked Nasdaq with revamping its post-trade infrastructure including registry, depositary and risk management functions.
The overhaul, which replaces a technology system installed in 2001, will include a central counterparty clearing service.
“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,” said Khalid Abdullah Al-Hussan, chief executive of the Tadawul, by which name the Saudi stock exchange is known locally.
US-based Nasdaq said the technology “transformation” is expected to be completed in the second half of 2020.
Adena Friedman, Nasdaq chief executive, said the project “demonstrates a clear vision by Tadawul to attract capital – both domestic and foreign”.
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