Tadawul Announces The Approval Of The Derivatives Exchange Trading And Membership Rules And Procedures

In reference to the public consultation drafts of the Derivatives Exchange Trading and Membership Rules and Procedures announced by the Saudi Stock Exchange (Tadawul) on 17/7/1440H Corresponding to 24/3/ 2019G, and after extensive consideration on the suggestions and the comments received and applied the necessary amendments.

The Exchange (Tadawul) announces that the Board of the Capital Market Authority (“CMA”) has issued its Resolution Number (2-137-2019) Dated (12/4/1441H) Corresponding to (9/12/2019G) regarding the approval of the Exchange Rules below:#

1. Derivatives Exchange Trading and Membership Rules. (click here)
2. Derivatives Exchange Trading and Membership Procedures. (click here)
3. Glossary of Defined Terms Used in the Exchange Rules. (click here)

The Derivatives Exchange Trading and Membership Rules and Procedures aim to regulate Derivatives Exchange membership and trading activities on derivatives. The planned launch of a Derivatives Market in Saudi Arabia follows on recent significant market developments, including the commencement of the Central Counterparty Clearing House (“CCP”) to develop future clearing services. Tadawul will launch an index futures contract based on MSCI Tadawul 30 Index (MT30). Tadawul is planning to launch additional derivative products gradually as part of its strategy to diversify its product offering and provide more investment opportunities for market participants.

It should be noted that these Rules and Procedures shall be effective on 15th January 2020