HSBC Saudi Arabia has succeeded in becoming the first company to establish an electronic link for a custodian within the Saudi market.
This was achieved through the ICM Central Custodian System offered by DirectFN.
The connection between HSBC Saudi Arabia and the EDAA Central Depository System, which is based on the central custody system, provides a variety of services and conducts operations related to the central depositary in straight-through processing (STP).
They do not require manual intervention, which increases the efficiency of the system.
Additionally, this connection enables investors and companies working with Saudi Arabia to reap benefits on multiple aspects.
This includes direct customer interaction with direct portfolio creation and management and seamless management of share sharing and transfer between trading and deposit accounts.
Ahmed AlShammari, head of service delivery at HSBC securities services in Saudi Arabia, said: “This event is a milestone in our quest to deliver high-quality services to our customers, which is in line with our operational automation initiatives.”
Walid Al Balla, CEO of DirectFN, commented: “As financial technology partner to HSBC Saudi Arabia, we are excited to see through with the go-live of HSBC STP of depository related functions undertaken by our client, HSBC.”