2018 Highlights

Supported by:

• Forming Muqassa that will be responsible for developing future clearing services in accordance with the best international risk management practices and standards.
• Removing cash prefunding as a requirement for trading.
• Moving to a Delivery vs Payment (DvP) model where the delivery of securities occurs only if the corresponding payment is effected.
• Enhancing the Independent Custody Model (ICM) to ease QFI Qualified Foreign Investor access to the market.
• Moving to an auction method for opening and closing prices In this method the closing price is set by an auction that takes place until 10 minutes after the close of normal trading. An equilibrium price is set during the closing auction on normal trades (trades over SAR 15,000). If there are no normal trades during auction the closing auction becomes the last traded price. If there are no trades during the day, the closing price becomes the previous day’s closing price , which aligned Tadawul with international best practices.
• Announcing the launch of a derivatives market as an active platform to encourage investment and diversify the investor base.

Resulted in:

The number of Qualified Foreign Investors (QFIs) growing from about 100 at the beginning of the year to nearly 500 by the end of the year.

MT30

Agreement to launch joint index A simulated portfolio of securities that represents a market or a portion of that market with MSCI in 2019

The index A simulated portfolio of securities that represents a market or a portion of that market represents the largest and most liquid stocks, providing a useful benchmark for investors.

One of the five best performing stock markets in the world in 2018

in terms of the percentage increase of the market index A simulated portfolio of securities that represents a market or a portion of that market .