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Saudi set for two-day settlement switch in second quarter

10 January 2017


At present, trades must be settled on the same day, a practice known as T+0

Read more: saudi t+2 settlement

Saudi Arabia's Tadawul stock market has confirmed its switch to a two-day settlement cycle for equities, bonds, REITs and ETFs will take place during this year’s second quarter.

The bourse outlined more details of its T+2 settlement plans this week along with draft rules or short-selling and the borrowing and lending of securities.

Officials first announced the proposed changes last year in a move to align its market model with international standards, attract foreign investors, improve trading efficiency and reduce risk.

At present, trades must be settled on the same day, a practice known as T+0.

The Saudi Stock Exchange has asked for comments on its T+2 and securities lending plans by February 8th.

Securities Depository Center (SDC) acts as Saudi Arabia's CSD, performing securities settlement safekeeping and registry functions.


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