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Contact UsExchange Traded Funds (ETFs)
ETFs are among the wide range of investment options available on the Saudi Exchange. They are traded on the Saudi Exchange’s sophisticated trading platform, with all trades matched, confirmed and executed electronically following a T+2 settlement cycle. In addition, the Securities Depository Center Company (“Edaa”) offers a range of post-trade services to ETF investors.
- Trading Services
- Post-trade services
Trading Services
The Saudi Exchange offers one of the most sophisticated trading platforms that creates a seamless experience through full automation and processing. All ETF trading activities are matched, confirmed and executed electronically following a T+2 settlement cycle. The trading engine has been designed to serve multiple types of orders to meet investors’ needs. ETFs are characterized by the existence of the market maker who is working to simulate the performance of its indices by continuously placing bids and asks in the ETF market.
Post-trade services
The Securities Depository Center Company (“Edaa”) offers a range of vital post trade services that make the Saudi capital market more efficient and benefit issuers, investors and members. These include depository services, registry of ETF, transfer of ETF ownership, ETF ownership restriction and release, clearing and settlement related services, consolidated reporting, asset servicing and more.
Frequently Asked Questions
Market Makers provide bid and ask quotes for ETFs close to their Indicative Net Asset Value (iNAV).
The Saudi Exchange has four types of funds available to investors:
- Exchange Traded Funds (ETFs)
- Closed Ended Investment Traded Funds (CEFs)
- Real Estate Investment Traded Funds (REITs)
ETF units can be traded like any other security through Brokers during trading hours. Also, units can be created and redeemed through the Market Maker or any other authorized party.
Funds are pools of money allocated for a specific purpose or task. They can be established for different and diverse purposes, such as a government setting aside money to build a highway, a pension company setting aside money to pay future pensions, or a scholarship fund looking to support future students.
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