"Saudi Trading" Announces Update to the Main Market and "Nomu" Order Execution Mechanism

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Saudi Tadawul announced today, Thursday, an update to the market order mechanism in the main market and Nomu - the parallel market, which will be implemented starting Sunday, October 4.

It stated in a statement on its website: "Under the new mechanism, a market order allows execution against available quantities across multiple price levels, within a maximum range of five units for price changes starting from the best available price."

It continued: "When this range is reached, or if no additional available quantities are within it, any remaining unexecuted quantity is converted to a limit order at another execution price."

While the previous mechanism allowed executing a market order against the available quantity at the best available price, any remaining unexecuted part was converted to a limit order at the price of the executed part.

"Tadawul Saudi Arabia" explained that this update aims to increase the quantity that can be executed immediately from a market order, by providing access to additional liquidity within the range of five price change units. Consequently, a market order may be executed across multiple price levels instead of just one price level.

The update includes securities in the main market and the parallel market only, while the derivatives market remains unchanged.