The PFMI review was conducted by Edaa and Thomas Murray in line with CPMI-IOSCO self-assessment, a rigorous, periodic review process where FMIs evaluate their compliance with the 24 Principles. Together we examined the central securities depository (CSD) risk in the context of best global practices for safekeeping and the settlement of securities.

PFMI international standards

The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) are the standard-setting organisations that have issued the PFMI and monitor their implementation. These Principles are international standards for payment systems, central securities depositories, securities settlement systems, central counterparties and trade repositories. 

The PFMI are designed to help ensure the safety, efficiency and resilience of these infrastructures supporting global financial markets, making their full, timely and consistent implementation fundamental. CPMI and IOSCO members have committed to adopting the principles and responsibilities contained in the PFMI in line with the G20 expectations.

About Edaa

Edaa was established on 30 August 2016 as a closed joint stock company fully owned by the Saudi Tadawul Group. The depository is established in accordance with the Saudi Companies Law issued by Royal Decree No. M/3 dated 28 Muharram 1437 (corresponding to 11 November 2015).

Edaa is responsible for the deposit, transfer, settlement and registration of ownership of the securities traded on the Saudi Exchange and cleared by Muqassa. This includes equities, sukuk / bonds, government-issued debt instruments, REITs and ETFs. Instruments are held in dematerialised form. Settlement is on a T+2 basis for both cash and securities. The cash settlement is via the RTGS system of the Saudi Arabian Monetary Authority (SAMA), SARIE. 

About Thomas Murray

Thomas Murray is the global authority in asset safety, providing resilience intelligence, and risk benchmarking for asset owners and managers, custodians, and financial market infrastructures. 

Our risk management and capital markets experts are pleased to have supported Edaa’s continuing mission to aid the Kingdom of Saudi Arabia’s efforts to comply with the CPMI-IOSCO PFMI as part of the wider G20 requirements.