Riyadh - Mubasher: The Saudi Stock Exchange (Tadawul) announced on Wednesday a series of measures to improve market access and efficiency.

Tadawul aims at enhancing the market liquidity, bolster investor security, mitigate risk and further align market practices with global best practices, according to an official statement.

The Saudi exchange is updating the Independent Custody Model (ICM) to enhance Qualified Foreign Investor access to the market by providing more flexibility in trading limits for ICM clients.

A new procedures will be introduced to mitigate credit risk associated with the settlement process for all participants

It is also Introducing a new optional model to allow asset managers to aggregate the orders of managed assets, assuring best execution and fair allocation for their funds and clients, moving from a Volume Weighted Average Price (VWAP) to an auction method for determining closing prices for both the Main Market and Nomu-Parallel market.

Tadawul is also enhancing the opening price auction in line with practices adopted by most other major markets, as well as implementing a Market Making (MM) Program based on global best practices to enhance liquidity, facilitate orderly price formation, fortify the sukuk, bond and ETF markets and pave the way for ETPs and derivatives.

The changes to the ICM and introduction of the option for Asset Managers to aggregate orders are set to be implemented effective 21 January.

Meanwhile, the changes to the methods for determining opening and closing prices and introduction of the Market Making program are scheduled to be implemented by the second quarter of 2018, the statement noted.