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| The Saudi Stock Exchange (Tadawul) |
Tadawul was founded in 2001G as the successor to the Electronic Securities Information System. In 1990G, full electronic trading in Saudi Arabia equities was introduced. The market capitalisation was SAR 1.6 trillion at the end of 18 October 2006G. As of the same date, 82 companies were listed for trading on Tadawul.
Trading on Tadawul occurs through a fully integrated trading system covering the entire process from trade order through settlement. Tadawul’s trading hours are 10:00 am to 12:00 pm and 4:30 pm to 6:30 pm. After the close of trading, orders can be entered, amended or deleted until 8:00 pm. The system is not available between 8:00 pm and 8:00 am. From 8:00 am new entries and inquiries can be made. For the opening phase (starting at 10:00 am), the system starts opening procedures, it establishes the opening prices and determines orders to be executed according to the matching rules.
Transactions take place through the automatic matching of orders. Each valid order is accepted and generated according to the price level. In general market orders (orders placed at best price) are executed first, followed by limit orders (orders placed at a price limit), provided that if several orders are generated at the same price, they are executed according to the time of entry.
Tadawul distributes a comprehensive range of information through various channels, including in particular the Tadawul website and Tadawul Information Link. The Tadawul Information Link supplies trading data in real time to information providers such as Reuters.
Exchange transactions are settled on a T+0 basis, meaning that ownership transfer takes place immediately after the trade is executed.
Issuers are required to report all material announcements via Tadawul for onward dissemination to the public.
Surveillance and monitoring is the responsibility of Tadawul as the operator of the market. The aim of supervision is to ensure fair trading and an orderly market.
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