Tradeweb Launches Electronic Marketplace for Sukuk and Bonds in Saudi Arabia
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Tradeweb Markets has opened Saudi Arabia’s electronic marketplace, a hub for sukuk and Saudi Riyal-classified bonds. The first transaction of the platform was carried out between BNP Paribas and BlackRock; after that was a trade between BlackRock and Goldman Sachs.
The Chief Executive Officer of Tradeweb, Billy Hult, described the CMA’s license as a vital moment for the fixed income market in the Kingdom. He added that the firm’s entry into Saudi Arabia created a path for higher international participation.
Tradeweb’s ATS Gains Permission From The Saudi Capital Market Authority
The Alternative Trading System (ATS) of Trade Web has received a license from the Capital Market Authority (CMA), after it won a competitive tender early last year. The move of the regulator tallies with Saudi Arabia’s desire to broaden its financial trades. It also wants the attention of global investors as part of its economic multi-pronged approach.
The ATS is part of Tradeweb’s broader offering of expanding markets, which already covers over 20 currencies across fixed income and derivatives. By incorporating Saudi Riyal bonds, the Company reinforced its footprint in the Middle East, merging with the Saudi Royal bond. The company is now participating in an increasing list of markets from Latin America to the Asia Pacific.
Tradeweb’s inauguration happened at the same time as Saudi Arabia’s entrance to the J.P. Morgan Growing Trade Bond Index list. This trade bond attracts close to $5 billion in foreign capital inflows. The introduction of the new platform will aid foreign investors to trading easily in the Saudi debt market, making trade efficient and clear.
The New Platform Simplifies Trading for Investors in the Saudi Debt Market
The Head of Emerging Market, Digital assets trading and FX commodities, Yudhveer Chaudhry, explained that the launch was a technological achievement and a sign of “great interest” in Arab’s fixed income opportunities.
Tradeweb’s ATS was created for professional investors under CMA control. It aids local trading conventions and provides easy trading for future product expansion. The firm said it may grow the platform to include corporate bonds, buyback agreements, and derivatives, under a regulatory licence.
As Saudi Arabia speeds up its financial systems through the new launch, the Kingdom is showing itself as a modern centre for investment and trade in the Middle East. Tradeweb will play a significant role in achieving these goals.
