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 Exchang

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.