Riyadh – Mubasher: The Saudi Stock Exchange (Tadawul) will begin implementing the new opening and closing price calculation mechanisms for both the Main Market and Nomu Parallel Market on Sunday 27 May.
The Saudi bourse previously announced that its new trading mechanism involves calculating the closing price instead of the current Volume Weighted Average Price (VWAP) as well as enhancing the current mechanism to calculate the opening price.
Tadawul made the original announcement on Tuesday, 22 May and highlighted that the new mechanism will help support the bourse’s efficiency to be in line with international state-of-the-art practices.
“Opening prices will continue to be determined by auction but market orders shall be displayed unpriced at the top of the order book during the auction period, and a single index opening value will be published after all order books have uncrossed,” Tadawul said in a previous statement.
