Riyadh – 31 August 2022: The overall risk rating for Edaa, a company fully owned by Saudi Tadawul Group which operates and maintains the Depository and Settlement System (DSS), has been upgraded from ‘A’ to ‘A+’ with a stable outlook by Thomas Murray, the leading global post-trade risk and custody specialist.

The revision comes following several enhancements by Saudi Tadawul Group, including removal of pre-funding requirements, the introduction of a central counterparty in the cash market (Muqassa), and the recent roll-out of enhancements to improve trade and post-trade services,
including expanded settlement over three daily batches and buy-in facilities.

Raed Alhumaid, CEO of Edaa, said: “We are delighted with this upgrade, which serves as a testament to our hard work and determination to align with international standards by introducing a new central securities depository system and improved post-trade services. We aim to continue enhancing the experience for market participants and to offer secure depository services, while strengthening the Saudi capital market’s infrastructure and increasing its attractiveness to investors and issuers alike.”

Thomas Murray also reviewed and upgraded Edaa’s component risk grades for Asset Commitment Risk from ‘A-’ to ‘AA’, Liquidity Risk from ‘A’ to ‘A+’ and Counterparty Risk from ‘A- ‘to ‘AA- ‘with a stable outlook.