Saudi Arabia-based financial institution SNB Capital has chosen Broadridge to help build out its local securities lending and borrowing business.
SNB Capital will incorporate Broadridge’s Securities Finance and Collateral Management (SFCM) solution to grow the coverage of its securities services offering on local assets.
The firm aims to expand its financial market footprint following approval of market marking rules, in addition to the green light given in 2022 for the amended Securities Borrowing and Lending Regulations by the Saudi Exchange Securities Depository Centre (Edaa), says SNB Capital.
This aligns the Saudi Arabia market with international best practices, allowing institutions to drive the creation of securities lending and borrowing programmes.
SNB Capital is implementing Broadridge’s full lifecycle agency and principal securities lending solution to deliver all aspects, front-to-back, of borrowing and lending trading and operational needs, with the hopes of providing scalability for the future as the firm continues to expand.
Darren Crowther, head of securities finance and collateral management at Broadridge, says: “Broadridge is excited to grow its strong partnership with SNB Capital as we jointly continue to bring more value to SNB Capital’s clients with a new securities lending and borrowing service offering, across multi-custody principal and agency trading models.”
“Global markets are increasingly complex with greater numbers of potential revenue streams across the business. Broadridge’s SFCM solution enables firms to start up rapidly, capturing securities finance growth opportunities, while integrating with other internal or external systems, to help them meet their regulatory obligations and streamline their operations.”
Loai Bafaqeeh, head of securities division at SNB Capital, adds: “SNB Capital is perfectly positioned to satisfy strong demand for securities lending and borrowing across Saudi Arabia.
“With Broadridge and their SFCM solution, our joint efforts will provide global SBL expertise, an end-to-end platform with the required trading, operations and connectivity, as well as the capacity to rapidly bring this product to market, based on the updated regulatory and market structure provided by the Saudi Exchange and Securities Depository Centre.”
