The Saudi Exchange announced today amendments to the structure of its minimal incremental price movement bands, or “tick size” bands, for Main and Parallel (Nomu) Market securities, excluding debt instruments.
With these changes, the Saudi Exchange is expanding the applicability of smaller tick sizes, which will enable more precise pricing and enhance overall market efficiency. Expanding the applicability of smaller tick sizes will also minimize spread constraints, thereby reducing trading costs for investors. The amendments also include a band for securities priced at or above SAR 500.
Mohammed Al-Rumaih, CEO of the Saudi Exchange, said: "At the Saudi Exchange, we have long been committed to fostering an advanced capital market that caters to the evolving needs of investors. These enhancements to tick sizes are the result of our close engagement with market participants and ensure that the Saudi Exchange remains highly competitive and attractive to investors around the world. These changes will offer many benefits, including lower trading costs, fairer prices, and a smoother trading experience for investors.”
The new structure introduces expanding the applicability of smaller tick size bands, in addition to an additional band for securities priced at SAR 500 and above to maintain an appropriate range of spreads across price bands.
The implementation of these enhancements is part of the efforts of Saudi Tadawul Group (STG), and its subsidiaries, to develop the Saudi capital market, in line with the objectives of the Financial Sector Development Program (FSDP) and reinforce its position as a globally attractive investment destination.
To learn more about the amendments, please [Click here].
