Riyadh: The Securities Depository Center Company (Edaa) today announced that it will launch the Repo Collateral Transfer service to facilitate the transfer of collateral required under repurchase agreements.
The Repo Collateral Transfer service has been established by Edaa to address the market’s need for a safe and secure financing framework where collateral is seamlessly transferred between the parties, while reducing associated credit risks. The service provides borrowers with liquidity while reducing credit exposure for lenders as the collateral would be transferred under their name throughout the transaction period.
Commenting on the announcement, Mamdooh AlSedairy, CEO of Edaa, said: “We are proud to launch the Repo Collateral Transfer service which provides lenders and borrowers a safe and secure framework for transacting. This is very much in alignment with the Financial Sector Development Program initiatives and comes as part of Edaa’s strategic plan to enable innovative and efficient solutions for all market participants, in line with international best practice.”
“Over the last two years, Edaa has made significant strides, together with the Saudi stock exchange company “Tadawul” and the Saudi Capital Market Authority, to strengthen the Saudi capital market.”
For more information about the service, visit the webpage here
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About Edaa
The Securities Depository Center Company (“Edaa”) was established in 2016 and is fully owned by the Saudi Stock Exchange (Tadawul). “Edaa”, operates and maintains the Depository and Settlement System (DSS) to record and maintain securities and register the ownership of securities. It aims to enhance the efficiency of securities deposit and registration services, in alignment with Saudi Vision 2030 objectives, through developing a more resourceful environment that fosters excellence within all sectors related to the capital market.
Edaa Contact:
Asma Alghamdi
asma.ghamdi@tadawul.com.sa
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