Logo of The Saudi Exchange (Tadawul)
The Saudi Exchange (Tadawul) will launch single stock futures (SSFs) contracts on July 4, which will be cleared by the Securities Clearing Center Co. (Muqassa).
The SSFs are the second derivatives product to be introduced on Tadawul, after the launch of Index Futures, as part of the wider efforts to develop an advanced capital market in Saudi Arabia.
The SSFs will enable local and international investors to hedge and manage portfolio risks more effectively as well as diversify products available for trading in the market.
The selected underlying stocks for the SSFs were chosen from the largest and most liquid companies listed on Tadawul. They are based on criteria that aim to ensure liquidity in an effort to meet market demand, maintain market integrity, and enable effective portfolio management.
The first tranche of SSFs will be based on the following listed companies: Al Rajhi Bank, Saudi Aramco, Saudi National Bank (SNB), Alinma Bank, SABIC, stc, Saudi Kayan, Saudi Electricity Co. (SEC), Almarai and Saudi Arabian Mining Co. (Maaden).
The SSF launch will enable the expansion of Tadawul’s derivatives market to include additional derivatives products.
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SSF Features |
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Contract Code |
Single Stock Futures |
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Underlying Shares |
- Al Rajhi Bank - Saudi Aramco - SNB - Alinma Bank - SABIC - stc - Saudi Kayan - SEC - Almarai - Maaden |
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Contract Size |
100 shares |
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Minimum price fluctuation –Tick |
SAR 0.05 |
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Daily Price Limits |
20% |
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Daily Settlement Price |
Daily settlement price of the futures contract shall be based on the contract price: - The VWAP (volume weighted average price) of last 10 minutes of the trading day, subject to a minimum of 10 trades in last 10 minutes - And if there are less than 10 trades in last 10 minutes then the Exchange shall use the Theoretical Futures Price (TFP) to compute the fair value of the contract at the market close |
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Final Settlement |
T+0 |
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Final Settlement Price |
Closing price of underlying assets |
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Settlement |
Cash settled |
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Price Decimals |
2 |
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Contract months |
Current month, next month and the next two quarters |
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Negotiated Deals |
Yes |
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Market Making |
Yes |
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Trading Hours |
Pre-open (Opening Auction): 9:00 - 9:30 |
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Contract Expiration |
The third Thursday of the expiry month. If it is a holiday, then expiry will move backward to the previous trading day |
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Type of Client |
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Tier II Individual*** |
Tier I Individual** |
Institutions* |
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200% |
133% |
100% |
Margin Multiplier |
Individual DPMs: Saudi individual investment account in which the manager (Authorized Person) makes the buy/sell decisions for its client without referring to the account owner (based on to the agreed terms between them).
** Qualified Investor -> Natural Person
*** Clients who are not under any of the other categories defined in this document
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