Huge investments in Tadawul enhancements; market ready for competition: Alhussan

Khalid Alhussan, CEO of Saudi Tadawul Group Holding

Khalid Alhussan, CEO of Saudi Tadawul Group Holding, said huge investments were injected into the new enhancements announced today, March 22.

The enhancements are related to systems and operations, as well as the establishment of a clearing company and introduction of new regulations, Alhussan told Argaam on the sidelines of the Saudi Capital Market Forum (SCMF) 2022.

Speaking on the bundle of new enhancements that aim to strengthen the market’s post-trade infrastructure, the top executive said Tadawul started working on them years ago.

He highlighted the importance of activating the role of Securities Clearing Center Co. (Muqassa) to manage the market’s settlement risks independently, given Tadawul’s market cap and liquidity.

The move incurred huge costs, Alhussan said. “Regardless of the costs, the Saudi market’s infrastructure became ready for competition and attracted new investors and issuers.”

Elsewhere, Alhussan said the deposit, trading and clearing regulations are compliant with international standards.

Tadawul announced today its intention to launch a bundle of new enhancements aiming to strengthen the post-trade infrastructure and increase its efficiency by providing a more streamlined trading experience, and support market participants to develop a wide range of securities services, according to data available with Argaam.

The enhancements will be implemented on April 3.