HSBC settles its first foreign institutional investor trade

HSBC Saudi Arabia settled its first foreign institutional investor trade recently under the new T+2 (Saudi Arabian Two Business Day Settlement) framework.
The framework is an important initiative that will align the Saudi Stock Market (Tadawul) with leading global settlement practices and develop an environment that promotes institutional level investments.
This will help increase the level of assurance for customers by providing enough time to verify transactions.
The framework will also help promote the role of makers, allowing short selling under the condition of borrowing equities. HSBC is committed to supporting the Saudi Stock Market to help achieve the objective of fostering a diverse economy that competes internationally.
Majed Najm, CEO and board member of HSBC Saudi Arabia, said: “We welcome the positive changes, which bring about consistency in the settlement practices in Saudi Arabia among its international peer group.
“HSBC Saudi Arabia continues to remain committed to the Kingdom in its efforts to institutionalize the capital markets.
“Through our custody and brokerage chains, we will continue to support the Saudi Stock Exchange in their endeavors to further develop the capital markets.”

Source: Arab News