Riyadh - Mubasher: The Saudi Stock Exchange (Tadawul) published on Monday the T+2 settlement cycle draft rules for public consultation, according to an official statement.
“Introducing the T+2 settlement cycle aims to align the Saudi Stock Market with leading global settlement practices, and to increase levels of asset safety for investors. Moreover, the T+2 settlement cycle has no negative effects on buyers or sellers,” the statement added.
According to the new settlement, buyers have purchasing power to buy new securities immediately after transaction execution, and do not have to wait for the cash settlement to be completed. Sellers are also able to sell purchased securities immediately with no need to wait for cash settlement of the transaction.
This comes as part of Tadawul’s strategy to support the development of the Saudi capital market and continuously enhance an environment that promotes institutional-level investments, the T+2 settlement cycle is planned to be implemented during the second quarter of 2017, the statement indicated.
The aim is to align the Saudi Stock Market with leading global settlement practices and increase levels of asset safety for investors.
