Derivatives

The launch of the Derivatives Market is one of the Financial Sector Development Program (FSDP) key initiatives under the Kingdom’s Vision 2030. This market enhances Saudi Exchange’s products offering and complements recent developments to the financial market infrastructure. Below you will find more information about the market characteristics. Additionally, we have provided some useful links that will direct you to more educational content.

Trading Cycle and Times

Trading Cycle

Step 1: Buyers and sellers submit orders via the member where their accounts are maintained. This may be achieved through one of the channels provided by the member which includes, but is not limited to, an electronic trading platform. These orders represent the agreement between the member and the investor to execute a specific business transaction as per the investor order.

Step 2: Orders are entered into the member’s Order Management System (OMS). In accordance with market conditions and the requirement of the investor, the orders within the bank’s OMS are forwarded to the Saudi Exchange via a high-speed network.

Step 3: Saudi Exchange attempts to match orders according to price and time priority. A variety of order types and special terms are available to the trader. Unmatched orders are maintained by the Saudi Exchange until they are matched, canceled or expired.

Step 4: For matched orders, trades are generated and reported electronically to Muqassa.

Step 5: The execution of the buy and sell orders that together form a trade consists of one or more contracts and occurs when the same price is specified by buy and sell orders, for a specified number of contracts

Trading Time

Trading Days: One session, Sunday through Thursday except on official holidays

Official Holidays in the Kingdom of Saudi Arabia are:

• National Day of Saudi Arabia (23 September).
• Eid Al-Fitr and Eid Al-Adha.
• Founding Day of Saudi Arabia (22 February)

The derivatives market will be closed during these holidays and an announcement of closure will be made on the Saudi Exchange website.