1.1 This document specifies the Trading and Membership Procedures that Exchange
Members and Registered Traders must follow to comply with the provisions of
the Trading and Membership Rules.
1.2 The Exchange may waive any person’s obligations to the provisions of these
procedures either based on a request from the relevant person or on its own
initiative.
1.3 These procedures will enter into effect as per the Exchange’s approval
resolution.
2.1 Access Rights
2.1.1 Exchange Members must comply with the requirements prescribed by
the Exchange from time to time when accessing the Trading
System.
4.1 Orders must be submitted using only the following channels:
4.1.1 T Channel: A channel specifically designed for Registered Traders to
submit orders;
4.1.2 I Channel: A channel specifically designed for clients to submit
orders via Exchange Members’ websites and online applications;
4.1.3 A Channel: A channel specifically designed for clients to submit
orders via Automated Teller Machines;
4.1.4 V Channel: A channel specifically designed for clients to submit
orders via telephone calls;
4.1.5 S Channel: A channel specifically designed for clients to submit
orders via the short massages system protocol (SMS);
4.1.6 G Channel: A channel specifically designed for the submission of
automated orders based on pre-defined calculated instructions
(Algorithmic Trading);
4.1.7 M Channel: A channel specifically designed for market makers to
submit orders related to their obligations as Market Makers either
via Registered Traders or Direct Market Access, including
automated orders based on pre-defined calculated instructions
(Algorithmic Trading); and
4.1.8 Any other channel as prescribed by the Exchange from time to time.
4.2 Except for direct orders, Exchange Members must apply the two-factor
authentication standard when using the channel prescribed in (4.1.2).
5.1 Limit Order
5.1.1 The Trading System will improve the execution prices of limit orders
(by reducing them for buyers or increasing them for sellers)
whenever the price is better than the order’s price limit on the
opposite side (higher or lower as the case maybe). In the absence
of a better price on the opposite side, the order will be executed
at the limit price.
5.1.2 The execution price improvement mentioned in (5.1.1) of these
procedures is subject to the Trading System order entry priority.
5.1.3 The Trading System can execute limit orders participating in all
auctions at the latest Theoretical Prices. Such prices might be
better than the specified limit prices of relevant orders.
5.1.4 The Trading System can execute limit orders during the Fourth
Session at Closing Price.
5.2 Market Order
5.2.1 During the Second Session, the Trading System will execute market
orders partially or fully at one price, and convert the unmatched
parts of partially matched market orders into limit orders at their
traded prices.
5.2.2 Market orders participate in the Theoretical Price calculations.
5.2.3 The market-by-price view displays market orders. Market-by-order
view will not be available during the First and Third Sessions.
5.2.4 At the end of all auctions, unmatched parts of any market order will
be converted into limit orders at the last Theoretical Price. If the
Theoretical Price is not formed, the trading system will cancel
any outstanding market order.
6.1 Orders may bear one of the following conditions:
6.1.1 Fill or Kill (“FoK”) means the complete order quantity must be
executed as soon as it becomes available for matching; otherwise
the order will be immediately cancelled, taking into
consideration the following:
(a) the condition is available for limit and market orders; and
(b) the condition is not available during the First and Third Sessions.
6.1.2 Fill and Kill (“FaK”) means the order must be at least partially
executed as soon as it becomes available for matching; otherwise
the order (or the unmatched part) will be immediately cancelled,
taking into consideration the following:
(a) the condition is available for limit and market orders; and
(b)the condition is not available during the First and Third Sessions.
6.1.3 Hidden Quantity means the order will disclose a portion of its
quantity. Each time the disclosed portion is fully matched, the
order will disclose an equal portion of its quantity, taking into
consideration the following:
(a) the full quantity of the Hidden Order participates in the Theoretical
Prices calculations;
(b) the condition is available for limit orders;
(c) the minimum quantity of the order must be (50,000) securities, except
for Debt Instruments the minimum quantity of the order must be
(50,000) Saudi Riyals; and
(d) the minimum disclosed portion must be (5%) of the total order
quantity.
6.1.4 Cancel on Disconnect means the order will be cancelled
automatically (in case of Market Orders and Limit Orders) upon
any network disconnection during the Trading Day between the
Exchange Member and the Trading System.
7.1 The Trading System determines order validity according to when orders enter
the system, as follows:
7.1.1 Session means that orders are subject to full execution at the end of
either the First or Third Sessions, and they should be transmitted
during either the First or Third Sessions of the same day.
7.1.2 Day means that orders are subject to full execution until the end of the
Fourth Session (or the Second Session if the Fourth Session is
not applicable as in the case of ETFs and Debt Instruments).
7.1.3 Good till Cancelled (“GTC”) means that orders are subject to full
execution with a validity period of up to (30) days from the
transmission of the order.
7.1.4 Good till Date (“GTD”) means that orders are subject to full
execution until a specified expiry date. The expiry date can be set
up to a maximum of (30) days from the transmission of the order.