Saudi set for two-day settlement switch in second quarter
Saudi Arabia's Tadawul stock market has confirmed its switch to a two-day settlement cycle for equities, bonds, REITs and ETFs will take place during this year’s second quarter.
The bourse outlined more details of its T+2 settlement plans this week along with draft rules or short-selling and the borrowing and lending of securities.
Officials first announced the proposed changes last year in a move to align its market model with international standards, attract foreign investors, improve trading efficiency and reduce risk.
At present, trades must be settled on the same day, a practice known as T+0.
The Saudi Stock Exchange has asked for comments on its T+2 and securities lending plans by February 8th.
Securities Depository Center (SDC) acts as Saudi Arabia's CSD, performing securities settlement safekeeping and registry functions.
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