Tadawul trading screen
The Saudi Exchange (Tadawul) and the Securities Depository Centre (Edaa) published the draft amendments to the exchange rules for public consultation, with feedback and observations to be received no later than March 9.
In a statement, Tadawul said all opinions and observations will be considered and assessed during the process of issuing the final draft.
These amendments aim to implement global best practices within the securities borrowing and lending and short selling frameworks, enhance the structure for the use of hedging instruments, and further enable investment tools for all market participants, it added.
|
Proposed Amendments |
|
|
Current Rules |
Amendments |
|
a) When entering into a securities lending transaction, the borrower must provide collateral to the lender and maintain it as specified in the securities lending agreement. b) At no time may the value of the collateral provided by the borrower be less than 100% of the current market value of the borrowed security. |
a) When entering into a securities lending transaction, the borrower must provide collateral to the lender of no less than 100% of the current market value of the borrowed security, aligning with the binding securities lending agreement. |
Be the first to comment
Comments Analysis: