Tadawul to start using T+2 settlement cycle on April 23

25/03/2017 Argaam

The Saudi Stock Exchange (Tadawul) will amend the settlement cycle of listed securities to (T+2) starting from April 23, 2017, which allows a two-day settlement period for transactions, the bourse said in a statement.

 

All necessary pilot phases have been completed to ensure full technical and functional readiness, as well as market connectivity, the statement added.

 

“Amending the (T+2) settlement cycle of listed securities will increase the level of asset safety for investors by providing enough time to verify trades, and will unify the settlement duration for all types of listed securities,” it said.


The new settlement will not have an impact on traders.

 

“It gives sellers purchasing power for the securities they sell, thus, they will be able to buy new securities directly upon executing trades. At the same time, buyers will be able to sell securities directly upon executing trades with no need to wait for completing the settlement of securities.”

 

The move comes as Tadawul aims to operate within leading global settlement practices.

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