An order to sell the total volume available at the current best price available in the market.

An order to buy the total volume available at the current best price available in the market.

Creates an opposing (matching) order to an existing order.

An unpriced order to trade a security immediately at the current best price available in the market. A market order becomes a limit order once a price is calculated. A limit price on market orders is generated automatically by the trading system based on the defined price protection formula.

An order to buy and sell a stated number of shares at a specified price or better.

An unpriced order is similar to a market order in that it is entered without a specified price and that it becomes a limit order once a price is calculated. The difference is that an unpriced order does not have price prtotection applied.

A portion of volume that is not displayed publicly. This may be necessary when a large volume order exists. By leaving a portion of this large volume undisclosed the order receives a price based on prevailing market conditions. If the entire volume were displayed in the market, the large volume order may negatively affect the market price.

The total volume of the order must trade in its entirety.

The order trades in amounts of the minimum volume specified. After each trade volume is rolled in.

The minimum volume must be filled before the order can trade.

TADAWUL provides for flexibility. Orders may exist in the market for one day (good-till-day), for the current week (good-till-week), for the current month (good-till-month) or up to 30 days (good-till-date). Investors may also use Fill or Kill orders, this order must be filled in its entirety, or partially, as soon as it enters the market. If an immediate trade is not possible, the order is automatically killed (cancelled).

It provides for a transparent market as market prices and announcements are instantaneously published to the banks, third party vendors and to the investors. Issuers may enter announcements and financial information directly over the Internet. This is speedily published on the Tadawul web site.

It ensures fairness by providing equal access to the market for all market participants, in addition to maintaining trade execution priorities. Electronic order routing from bank branches also ensures geographic equality of service.

 

Step 1

Buying and selling investors submit orders via the bank where their accounts are maintained. This may be achieved by directly visiting the bank or through delivery channels such as the Internet. These orders represent the agreement between the bank and the investor to execute a specific business transaction. Tadawul automatically validates availability of the shares and investor details.

Step 2

Orders are entered into the bank’s Order Management System (OMS) providing banks with an effective way of managing and tracking investor orders. In accordance with market conditions and the requirement of the investor, the orders within the bank’s OMS are forwarded to Tadawul via a high-speed network.

Step 3

Tadawul attempts to match orders according to price, and then time priority. A variety of order types and special terms are available to the investor. Unmatched orders are maintained in Tadawul until either they match, are taken out of the market or expire.

Step 4

From matched orders, trades are generated and reported electronically to the Central Securities Depository.

Step 5

A trade results in the immediate transfer of shares from the account of the seller to the account of the buyer. All trading is conducted in the dematerialized form. Cash transfer is achieved via the national real-time gross settlement system, SARIE.