Edaa, Clearstream linkage enables investors to settle securities without QFI status: official

Tadwul trading screen

Linking the emerging markets to the international depository centers is a prerequisite for upgrade to the international bond indices, Al Eqtisadiah newspaper reported, citing Jan Williams, Head of Global Markets at Clearstream. 

He added that the new link will facilitate investors’ access to the Saudi Exchange (Tadawul) and boost their trading, noting that the current link enables Clearstream clients to settle their qualified securities without the need to apply for the Qualified Foreign Investor (QFI) status. 

Elsewhere, Williams said international investors responded to the recent regulatory developments in the Kingdom. "We, in Clearstream, noticed strong interest from an increasing number of prominent international investors," he noted. 

The linking mechanism with the Securities Depository Center Co. (Edaa) will be a key factor in attracting foreign liquidity to the local debt market.

This mechanism will allow foreign investors to invest in the Saudi debt market through participating in the monthly auction of government sukuk as well as direct purchase from the market, the official said.

On June 14, Edaa announced the activation of the linkage with Clearstream, a post-trading services provider of Deutsche Börse Group, Argaam earlier reported.