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Interested in flexible solutions to settle listed debt instruments? Discover our OTC Settlement Service
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OTC Settlement for Listed Debt Instrument

Edaa's OTC Settlement Service for listed debt instruments enables investors to settle bilaterally negotiated transactions through Edaa members(custodians) without the involvement of a broker,  in accordance with applicable regulatory frameworks. This service enhances flexibility for market participants, supports broader investor engagement, and aligns with international practices to strengthen the overall efficiency and attractiveness of the Saudi debt market.

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Service Benefits

  • The service enables direct bilateral settlement between investors through custodians, without the involvement of a broker, providing greater flexibility for Over-The-Counter transactions.
  • It supports Delivery versus Payment (DvP), automates key settlement functions, and reduces transaction costs and processing times.
  • Investors can now settle trades outside the exchange trading platform, improving speed and operational efficiency.
  • The model is aligned with global post-trade standards facilitating greater foreign investor participation.
  • This initiative reinforces Edaa’s commitment to modernizing post-trade infrastructure and supporting the broader development of the Saudi debt market.

Fees

Service Fees Frequency
OTC Settlement for listed debt instrument 0.5 bps on settlement value per side

Frequently Asked Questions

It is a service that allows the settlement of trades negotiated directly between two parties, without execution through the exchange trading platform, in accordance with defined regulatory frameworks.

The service supports the settlement of listed debt instruments, such as sukuk and bonds.

Investors are eligble to use OTC Settlement Service through Edaa members (custodians).

Applying the DvP principle ensures that securities are transferred only upon receipt of the corresponding payment, reducing settlement risk and enhancing trust between counterparties.

Direct settlement between counterparties via custodians. Greater flexibility in structuring trades. Reduced operational costs and processing time. Enhanced compliance with international standards.

The timeline is agreed upon between the counterparties and must fall within the T+0 to T+5 range.
Interested in flexible solutions to settle listed debt instruments? Discover our OTC Settlement Service
Contact Us