Saudi’s SAMA to begin repo operations with Bloomberg from Jan 2022

The Saudi Central Bank (SAMA) has revealed that it will use the Bloomberg auction system to conduct repo, reverse repo and Open Market Operations (OMO) with banks operating in the Kingdom starting from January 2022.

In 2018, the Central Bank has announced the successful completion of a project to build a ‘SAMA Electronic Platform’, a licensing platform for Murabaha, using the Bloomberg auction system, which would facilitate the participation of banks operating in the Kingdom in the main market for permits and Murabaha.

“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.”

Mr. Nicholas Bean, Global Head of Electronic Trading Solutions at Bloomberg, remarked that, “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 also offers 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. The solution is fully integrated with data, news, analysis and communication tools provided by the Bloomberg Terminal operating systems. The Bloomberg auction system is used in more than 30 countries around the world.

Related: Saudi’s SAMA unveils 1st version of its Open Data Platform