SAMA to launch repo operations using Bloomberg from January

Saudi Central Bank (SAMA) announced that it will conduct repo, reverse repo and Open Market Operations (OMO) with locally operating banks using Bloomberg’s Auction System from January 2022. SAMA had announced in 2018 the completion of the development of the SAMA Bills and Murabaha issuance system using Bloomberg.

“This collaboration with Bloomberg marks the next stage in developing the central bank’s operations. The increased efficiency of liquidity management operations will have a positive impact on the banking sector. It also aligns with international best practice in liquidity management through electronic trading,” Ayman Alsayari, Vice Governor of SAMA said.

Elsewhere, Nicholas Bean, Global Head of Electronic Trading Solutions at Bloomberg said: “Bloomberg’s Auction System is part of a range Bloomberg solutions designed to help bring greater transparency, liquidity and efficiency to capital markets. We are delighted by this ongoing collaboration with SAMA to further support the electronification of its markets.”

Bloomberg’s Auction System, a part of Bloomberg’s enterprise solution for central banks and government financial agencies, is used to perform auction tenders electronically, and by market participants to track these auctions and enter bids.

The system provides a safe and secure environment to issue debt and buy back debt, and perform other open market operations including repo and reverse repo auctions, all from a single integrated solution. It is fully integrated with the data, news, analytics and communications tools available on the Bloomberg Terminal. Bloomberg’s Auction System is used in more than 30 countries globally.