Tradeweb has recently launched an electronic trading platform aimed at local investors and brokers in Saudi Arabia, focusing on riyal-denominated sukuk and bonds. This innovative channel integrates trade execution, clearing, and settlement into a streamlined electronic process, making secondary trading more efficient while enhancing liquidity and data management.
Initial Transactions on the New Platform
Tradeweb, an American firm licensed by Saudi Arabia’s Capital Market Authority, previously catered only to international investors through its alternative trading system. Now, the new platform opens its doors to domestic market participants as well. GIB Capital and Saudi Awwal Bank made history by executing the inaugural transaction on this platform. The process involves sending transaction details to the Securities Clearing Center Company (Muqassa) for post-trade processing, followed by settlement at the Securities Depository Center Company (Edaa).
With this new setup, domestic investors can electronically request quotes, enabling comparisons from various eligible dealers. After a trade is agreed upon, the transaction details are seamlessly relayed to Muqassa, which in turn delivers settlement instructions to Edaa. This electronic method is available to professional investors and local brokers who meet predefined account and registration criteria.
Enhancing Liquidity and Pricing Strategies
Previously, the execution and settlement of domestic transactions were distinct processes, often leading to duplicate data entry across different systems. The newly integrated electronic record aims to eliminate data redundancy and minimize manual intervention, thus simplifying transaction tracking and auditing. While trades remain bilateral, this innovation preserves existing local settlement strategies.
Enrico Bruni, Tradeweb’s managing director and co-head of global markets, emphasized that while electronic trading does not independently generate liquidity, it significantly enhances the ease of finding and accessing existing liquidity. He believes that a more widespread application of a standardized request-for-quotation system could ultimately improve pricing dynamics and foster a deeper secondary market.
Tradeweb originally introduced its alternative trading system in Saudi Arabia in October 2025, focusing on international traders. Notable participants in the initial transactions included major financial names like BlackRock, BNP Paribas, and Goldman Sachs. Looking ahead, the company is also exploring potential expansions into electronic trading for corporate bonds, repo transactions, and derivatives, contingent upon client demand, liquidity conditions, and regulatory approvals.
This advancement marks a significant evolution in the Saudi financial landscape, providing local investors with enhanced tools to navigate the sukuk and bonds market. With efficient trading frameworks in place, the platform can set the stage for broader market engagement and improved pricing structures, further contributing to the growth of the local financial ecosystem.