Amending the settlement cycle of listed securities

21 Rajab 1438 - 18 April 2017 G

The Saudi Stock Exchange “Tadawul” announces amending the settlement cycle of listed securities to two business day (T+2) starting from Sunday 23rd of April 2017.

The goals of adopting a two business day settlement cycle will increase the level of asset safety for investors by providing enough time to verify transactions and deal with errors should they occur, and align the Saudi Stock Market with leading global settlement practices, as this will open up new listing opportunities for the Saudi market among other global markets indices.

There is no impact on traders. Buyers can sell securities directly upon executing transactions with no need to wait for completing the settlement of securities. Also, sellers gain purchasing power that enables them to buy new securities directly upon executing transactions with no need to wait for completing the settlement of securities

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Overview