Clearstream has signed a memorandum of understanding (MoU) with Saudi Arabia’s Securities Depository Centre Company (EDAA) to jointly introduce new post-trade services in the Saudi capital market. At the heart of the collaboration is the development and launch of the Saudi Collateral Management Service (SCMS), a centralised domestic triparty collateral management system.
Clearstream reveals in a press release that SCMS aims to optimise and automate financing activities for local financial institutions, increase liquidity in the Saudi market, and provide easy connectivity to international markets.
The system is a part of a bigger joint effort between Clearstream and EDAA to advance the local post-trade infrastructure and introduce new services such as collateral management, securities lending and borrowing, fund services, and digital securities. The project represents an expansion of an initiative Clearstream started in Saudi Arabia in 2021 to provide its clients with access to the Saudi domestic market through EDAA.
