Saudi Tadawul Group

The Saudi Tadawul Group announces its intention to launch a bundle of enhancements to develop the post trade infrastructure.

Following the transformation and in line with its ongoing commitment to advance the Saudi capital market, Saudi Tadawul Group will introduce a bundle of new post trade infrastructure enhancements that will be launched across Saudi Exchange, the dedicated securities exchange, Muqassa, the securities clearing house and Edaa the Securities depository center. The enhancements will be implemented on April 3rd 2022.

The enhancements are the largest in the history of the Saudi capital market and intend to provide investors with increased investment opportunities and access to a diverse range of financial instruments and new products This series of enhancements will also enable local and international investors to access a diverse range of financial instruments.

At Saudi Exchange, the enhancements will include:

  • The introduction of a more efficient handling of order flow by market participants, such as an enhanced mechanism for short selling activities.
  • The introduction of flexible settlement cycles for Negotiated Deals, allowing buyer and seller to agree on a settlement cycle from T+0 to T+5 based on their deal requirements
  • Buy-in trades executed at the Exchange in a separate orderbook settling T+0. Buy-in is a risk tool for investors to mitigate potential or failed trades.
  • Additional flexibility in the trading experience and settlement cycles for securities traded over-the-counter, where OTC trades are matched at the Exchange and buyers and sellers may agree on a settlement cycle from T+0 to T+5

At Muqassa, the enhancements will include:

  • The extension of Muqassa’s clearing services to cover all securities traded on the Saudi Exchange
  • Enabling Capital Market Institutions (CMIs) and banks to benefit from an enhanced degree of clearing service offering Muqassa membership.
  • Extended post-trade services such as rectify trade before settlement, average price trades and split trades.
  • Adoption of a comprehensive risk management framework.

At Edaa, the enhancements will include:

  • The introduction of a new central securities depository system and post-trade services at Edaa, in alignment with international standards.
  • Straight-through processing of ISO messaging
  • Daily and ad-hoc reconciliation and reporting of participants

The latest enhancements signal the Group’s determination to create an attractive investment environment conducive to the needs of domestic and international investors and aligned with global best practice.

The Saudi Tadawul Group keeps striving to raise bar for the benefit of all market participants. The introduction of these market infrastructure updates will support the development of the Saudi capital market into a technologically advanced, diverse and integrated capital market.

Learn more about the rest of these enhancements across the Saudi Tadawul Group’s subsidiaries below:

Factsheet