SNB Capital Begins Saudi Securities Lending Journey with Broadridge

  • Lending
  • 09.02.2023 11:00 am

To address recent regulatory changes, SNB Capital has chosen global Fintech leader, Broadridge Financial Solutions, Inc. (NYSE:BR), to help build its local securities lending and borrowing business. As the largest broker and asset manager by market share in 2022 and a leading custodian in Saudi Arabia, SNB Capital will leverage Broadridge’s Securities Finance and Collateral Management (SFCM) solution to grow the coverage of its Securities Services offering on local assets.

“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 & borrowing service offering, across multi-custody principal and agency trading models.” said Darren Crowther, Head of Securities Finance and Collateral Management, Broadridge. “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, capture securities finance growth opportunities whilst integrating seamlessly with other internal or external systems, to help them meet their regulatory obligations, and streamline their operations.”

“SNB Capital is perfectly positioned to satisfy strong demand for securities lending and borrowing across Saudi Arabia,” says Loai Bafaqeeh, Head of Securities Division, SNB Capital. “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, and the capacity to rapidly bring this product to market based on the updated regulatory and market structure provided by Saudi Exchange and Securities Depository Centre (Edaa).”

SNB Capital is expanding its financial markets footprint, with the recent approval of market-making rules, as well as the 2022 green light for the amended Securities Borrowing and Lending Regulations which was finalised last year by the Saudi Exchange & Edaa. This aligns the Saudi market with international best practices, allowing innovative forward-looking institutions, like SNB Capital, to drive the creation of client-driven securities lending and borrowing programs. As early adopters to these new regulations and the opportunities they bring, SNB Capital is implementing SFCM- 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 scalability for the future as they continue to expand.

Broadridge’s SFCM is a functionally rich, front-to-back SaaS solution for securities finance, used widely across the global buy- and sell-side securities lending, repo, and collateral trading markets. SFCM has given firms the ability to improve their existing securities finance businesses and expand into new global markets and opportunities, with a core foundation that is fully scalable for business growth.

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