Tradeweb Markets, a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, announced the successful launch of its Alternative Trading System (ATS) for the execution of Sukuk and Saudi Riyal (SAR)-denominated debt instruments in the Kingdom of Saudi Arabia. Licensed by the Capital Market Authority (CMA), the platform has facilitated its inaugural transaction between BlackRock and BNP Paribas, with a subsequent trade between BlackRock and Goldman Sachs.

Billy Hult, CEO of Tradeweb, said: “We are grateful for the trust placed in us by the CMA to exclusively deliver the first electronic bond ATS in the Kingdom of Saudi Arabia. The introduction of SAR bonds to Tradeweb’s multi-asset electronic platform marks not just a technological milestone, but also a foundational moment for fixed income market structure in the Kingdom, preparing the ground for greater international participation.”

Enrico Bruni, Co-Head of Global Markets at Tradeweb, added: “Tradeweb has a long-standing track record of delivering transparent, efficient trading solutions in markets around the world, and our entry into Saudi Arabia builds on that momentum. By combining local market insight with global trading workflows, we are solving for persistent challenges around post-trade workflows and global investor access, helping to support the next electronic phase of SAR bond markets.”

The CMA selected Tradeweb to build and run the Kingdom’s first regulated electronic bond market infrastructure following a competitive tender process in Q1 2024. The initiative reflects the country’s broader strategy to deepen capital markets, attract global investment and, subsequently, promote economic development in Saudi Arabia. Last month, Saudi Arabia was added to the J.P. Morgan EM Bond Index watchlist, in a move that is projected to attract approximately USD 5 billion in initial foreign inflows.

Raed AlHumaid, CMA Deputy of Market Institutions, said: “In line with the CMA’s role in developing the Kingdom’s capital market, the CMA welcomes the launch of the ATS operated by Tradeweb for Sukuk and debt instruments. This is an important step in enhancing the secondary market for debt instruments, while broadening the investor base and expanding the range of products available in the Saudi capital market. This initiative aligns with CMA’s strategic direction to position the Kingdom’s capital market among its leading global counterparts. Enriching market access, enhancing transparency, and strengthening post-trade infrastructure will contribute to this initiative.”

The ATS forms part of Tradeweb’s global multi-asset Emerging Markets (EM) platform, which supports more than 20 currencies across fixed income cash and derivatives markets. The addition of SAR bonds to the platform further expands Tradeweb’s EM footprint spanning Asia Pacific, Central and Eastern Europe, Middle East and Africa, and Latin America.

Yudhveer Chaudhry, Global Head of Emerging Markets, Foreign Exchange, Commodities, & Digital Assets Trading at BlackRock, said: “As Saudi Arabia continues to make great strides in developing its capital markets, fixed income opportunities hold great strategic interest for international investors. This inaugural transaction on Tradeweb’s new Alternative Trading System, in collaboration with our Global Emerging Markets Debt team, not only marks a technological milestone for the Kingdom’s fixed income markets but also reflects our commitment to supporting innovative platforms that enhance global investor access and strengthen capital market infrastructure.”

The Tradeweb ATS operates under CMA supervision and is designed for professional investors, in compliance with local and global market standards. Key benefits for users include protocol diversification, alignment with local trading conventions, as well as ongoing flexibility for potential future product extension into corporate bonds, repurchase agreements and derivatives markets, subject to regulatory consent from the CMA. Eligible clients can access the full SAR offering alongside existing EM currencies available on Tradeweb.

Source: Tradeweb Markets