Saudi stock market applies flexible bid-ask system

The Saudi stock market will start today the application of a flexible bid-ask system, whereby buy and sell orders beyond the 10 percent daily fluctuation limit will be accepted on the system.

The stock market applies a daily fluctuation limit of ten percent on Tadawul, and 20 percent on Parallel Market Nomu, where investors cannot plug in buy orders 10 percent below, or sell orders 10 percent above, the market price of a security.

Now, quotes beyond the daily limit will be accepted, and stored on the system for future execution if prices match.

The amendment will be executed on all stocks, tradable rights, ETFs and REITs listed on the markets.

Tadawul also applied a revamped independent custody service that will bring the market closer to international standards, and launched an optional service that allows asset managers to combine orders into a single transaction request.