The Saudi Arabian Monetary Authority (Sama) said it has successfully completed the development of Sama bills and Murabahas, one of the most common Islamic financing structures, using Bloomberg's auction system.
This will facilitate the participation of local and international banks operating in the kingdom in the primary market for bills and Murabahas. Sama has concluded its first issuance using the new system.
Sama Governor Dr Ahmed Alkholifey said: "The development of this platform is part of Sama's role in implementing the programme for strengthening governance, which corresponds to the Saudi Vision 2030. Furthermore, the improvement in liquidity management instrument issuances is an important step towards developing the pricing process of Sama's bills and Murabahas."
Bloomberg's Auction System, a fully managed auction solution, allows government agencies and financial institutions to perform their auction tenders electronically, with dealers who can track auctions and enter bids via the Bloomberg Terminal.
"This aligns it with international best practice to underpin the development of the debt market and liquidity management in Saudi Arabia through electronic trading," stated Dr Alkholifey.
Bloomberg’s Global Head of Fixed Income Trading Products Nicholas Bean expressed delight at collaboration with Sama on their new bond issuance system.
"Bloomberg's solution provides an optimal, cost-effective and secure way to manage operations for primary markets for issuers who would otherwise have to conduct a manual process, or have to build and implement their own solution," he noted.
It is part of Bloomberg's multi-asset auction offering, which is fully integrated with the data, news, analytics and communications tools available on the Terminal, he added.-TradeArabia News Service
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