The Saudi Stocks Exchange

The Saudi Stocks Exchange also referred to as Tadawul is responsible for operating the stocks exchange market in Saudi Arabia. With a market capitalization of $442 billion, the exchange handles all the trading operations as well as security listings. The exchange also offer post-trade services such as registration of listed and unlisted securities, depository services, securities transfer, securities pledging, ETFs ownership restrictions, clearance and settlement of related services, consolidated reporting and asset servicing. Saudi Arabia kicked off its securities lending program borrowing heavily from the US and Europe region existing rules. With a few exemptions to the previous T+10 cycle, the new laws stipulate that in accordance to Saudi’s Capital Market Law, all securities lending and borrowing must be in compliance with the interparty. This is the same approach applied in America, Europe and Asia’s stocks exchanges. In addition, the Capital Market Law provides that all transaction must be 100% of the borrowed amount and that the regulator retains the right to disclosure from the involved parties.