AI Summary
The Saudi Stock Exchange (Tadawul) will launch the derivatives market on Aug. 30, 2020. The MT30 Index futures will be traded as the first derivatives product in the market.
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Trading Hours |
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First session: Pre-open (opening auction) |
9:00 am to 9:30 am |
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Second session: Market Open(trading) |
9:30 am to 15:30 pm |
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Third session: closed market |
15:30 pm to 16:00 pm |
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Fourth session: closed system |
16:00 pm to 9:00 am the following day. |
Following are the details of the MT30 Index Futures:
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MT30 Index Futures |
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Daily Price Limits |
+/-20% |
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Minimum Price Fluctuation–Tick |
0.5 points valued at SAR 50 |
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Closing Price |
Last transaction price |
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Contract Code |
SF30 |
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Minimum Transaction |
One contract |
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Contract Size |
SF30 multiplied by SAR 100 |
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*Trading Commission |
SAR 25 |
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Speculative Position Limit |
Maximum number of net long or net short position to be held for all months combined 10,000 Qualified hedgers can hold positions beyond 10,000 contracts subject to Exchange approval upon submission of relevant documents of owning the underlying assets. |
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Settlement |
All outstanding positions are Mark to Market based on daily settlement price at the end of the day T+0
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Daily Settlement Price |
Daily settlement price of the futures contract shall be based on:
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Final Settlement Price |
The Final Settlement Price shall be the average value, rounded to the nearest 0.5 of an index point (values of 0.25 or 0.75 and above being rounded upwards), taken at every 15 seconds or at such intervals as may be determined by the Exchange from time to time from 14:00 to 15:00 plus one value after 15:10:30 of the MT30 on the Final Trading Day excepting the 3 highest and 3 lowest values. |
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Price Change Unit |
The minimum limit of futures price change will be determined by the market in the specification of listed derivatives. |
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Underlying Instrument |
MT30 (MSCI Tadawul 30 Index) |
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Contract Code |
(Product code + contract year + contract month) |
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Contract Months
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Current month, next month and the next two quarters
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Contract Expiry |
Third Thursday of the expiry month. If it is a holiday then expiry will move backward to the previous trading day. |
**Futures price = current price/underlying asset price x (average – dividend yield) x the remaining period until the contract expiration – diluted dividends x (average x the remaining period until the contract expiration)
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Investment Features |
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Characteristic |
Saudis |
Residing foreigners and GCC investors |
Non-residing foreigners |
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Voting right |
No |
No |
No |
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Participation in public offering |
No |
No |
No |
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Participation in private offering |
No |
No |
No |
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Capital gains tax |
0% |
0% |
0% |
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Withholding tax |
0% |
0% |
5% |
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Other restrictions |
No |
No |
Foreign investment restrictions |
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