Move to align its market microstructure with best global practices
In line with its strategic plans to further develop the capital market and foster an attractive investment ecosystem for local and international investors as well as all market participants, the Saudi Stock Exchange (Tadawul) plans to implement a “Trade at Last” session as an additional new session following the closing auction. The session will be effective next Sunday 12/5/2019, and will be applicable for both the Main Market and Nomu – Parallel Market as well as tradable rights.
Accordingly, the new Trade at Last session will extend for 10 minutes immediately after the Closing Auction session and will start at 3:10 p.m. AST and end at 3:20 p.m. AST. During the Trade at Last session, orders are entered and matched at the last traded price formed in the Closing Auction and only at that price (closing price).
CEO of Tadawul, Eng. Khalid Al Hussan said: “Implementing the Trade at Last session reflects our commitment to offer market participants value-added services that align with best international practices, cater to their needs, and provide them with additional time and flexibility needed to execute trades on the closing price after the Closing Auction.” Al Hussan added: “Many regional and international markets apply a Trade at Last session, which is an important milestone for the Saudi market especially within Saudi Arabia’s inclusion in international Emerging Market indices. We are also introducing this session as part of Tadawul’s strategic plans to enhance the market’s microstructure and build an advanced capital market characterized by flexibility, liquidity, and transparency.”
Introducing a dedicated session after the Closing Auction will provide participants with an extended period to fulfil their buying/selling interests after the Closing Auction at a formed price. In addition, Trade at Last caters to the needs of institutional investors and facilitates tracking closing prices for passive investors.
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