Tadawul’s T+2 cycle to attract new investors, says El-Kuwaiz

Implementation of the T+2 settlement cycle on the Saudi Stock Exchange (Tadawul) will attract a new category of market investors, while maintaining the current features which the Saudi investor are used to, Mohammed A. El-Kuwaiz, vice chairman of the Capital Market Authority (CMA) told Argaam on the sidelines of the Third Saudi Conference for Investment & Securities.

Adopting the T+2 settlement cycle for share trading will allow investors, who have bought shares two days in advance, to attend general meetings and receive dividends, El-Kuwaiz added.

From next week Tadawul will amend the settlement cycle of listed securities to (T+2). It allows a two-day settlement period for transactions. The bourse currently uses a T+0 settlement system, where trades are settled the same day.