Logo of Saudi Exchange (Tadawul)
The Saudi Exchange (Tadawul) opened the draft amended market rules and procedures for public consultation, aiming to gather feedback from stakeholders and market participants on the proposed regulatory framework.
The proposed changes address the impact of splitting nominal share values for listed companies. They also aim to boost market efficiency by adjusting price fluctuation limits across price tiers in the Main Market and the Nomu-Parallel Market, excluding debt instruments, to align with market dynamics.
A new clause mandates issuers maintain a minimum average closing price. If the average price falls below SAR 1 for 15 consecutive trading days, Tadawul will notify the issuer, which must disclose the notice and restore the price to SAR 3 or above via a stock consolidation within three months.
Proposed amendments adjust price tiers and tick sizes as follows:
|
Order Passing Requirements* |
|||
|
Current |
Proposed |
||
|
Price Tiers (SAR) |
Tick Size (SAR) |
Price Tiers (SAR) |
Tick Size (SAR) |
|
<10 |
0.01 |
<25 |
0.01 |
|
10–24.98 |
0.02 |
25–49.98 |
0.02 |
|
25–49.95 |
0.05 |
50–99.95 |
0.05 |
|
50–99.90 |
0.10 |
100–249.90 |
0.10 |
|
≥100 |
0.20 |
250–499.80 |
0.20 |
|
-- |
-- |
≥500 |
0.50 |
|
Debt instruments remain priced as a percentage of nominal value, with a 0.001% tick size. |
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Full details are available in the draft market rules.
The amendments include suspending trading of listed shares for two trading days after the issuer’s extraordinary general assembly decision to split its shares becomes effective.
A new provision allows off-market trading for up to five days following a trading suspension, in line with Clause 4 of Article 2 of these procedures.
Trading will also be suspended if the issuer fails to comply with Article 32 of the Listing Rules, with the exchange allowing off-market trading as follows: trading is suspended upon non-compliance, an announcement is made on the exchange’s website, and the suspension is lifted within five trading sessions after resolving the issue.
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