CEO of HSBC says ICSDs ‘game changer’

Rajiv Shukla, CEO of HSBC Saudi Arabia speaks on a panel at the inaugural Saudi Capital Market Forum in Riyadh, moderated by Noelle Al Jaweini, Chief of Cash Markets at Saudi Exchange (Tadawul).

When asked about international central securities depository (ICSD) linkages in the Saudi capital market, he said, “ICSD linkages are a game changer. We view market development through three pillars, one is the supply side, second is the demand side – the investors and third being an efficient infrastructure that links the two. ICSDs are addressing a very important part of the investor side of the equation [which is to] provide that linkage to foreign investors, and that is the game changer I am talking about.”

He continued, “Investors who are registered in the ICSDs Clearstream and Euroclear can directly invest and settle their bonds without having to go through the registration process. What you have is an expansion of the investor side and the demand side to a very big amount.”