The launch of the Derivatives Market is one of the Financial Sector Development Program (FSDP) key initiatives under the Kingdom’s Vision 2030. This market enhances Saudi Exchange’s products offering and complements recent developments to the financial market infrastructure. Below you will find more information about the market characteristics. Additionally, we have provided some useful links that will direct you to more educational content.
What is the Derivatives Market?
How to Trade Index Futures?
How to Trade Single Stock Futures (SSFs)?
Derivatives General Information
Derivatives Market Brochures
Derivatives Trading Guide
Single Stock Futures Brochure
Single Stock Options Brochure
Exchange Traded Instruments
|Opening Days||Opening Auction||Continuous Trading||Closing Auction||Settlement Cycle||Minimum Lot||Transaction Cost*||Security Format|
|Sunday - Thursday||09:00–09:30||09:30– 15:30||Last Traded Price||T+0||One contract||SAR 25 per contract||Electronic Form|
|Single Stock Futures|
|Sunday - Thursday||09:00–09:30||09:30– 15:30||Last Traded Price||T+0||One contract||2.5 Bps per transaction value||Electronic Form|
|Single Stock Options|
|Sunday - Thursday||09:00–09:30||09:30– 15:30||Last Traded Price||T+1||One contract||SAR 2 per contract||Electronic Form|
*Excludes brokerage fees
Negotiated Deals occur when both sellers and buyers determine the quantity and price of the Listed Derivatives Product contract involved in the transaction.
|Product||Minimum trade size|
|MT30 Index Futures||SAR 1,000,000|
|Single Stock Futures||SAR 1,000,000|
|Single Stock options||SAR 1,000,000|
Derivatives Market Features
Open of the market takes place by an auction for Futures or Options Contracts. The auction shall be based on the bids and asks entered during the Opening Auction.
Last Traded Price
Matching takes place based on price and time priority.
Daily settlement price :
The Daily Settlement Price of the Futures or Options Contracts is calculated based on a methodology determined and disclosed by the Exchange in the Listed Derivatives Products Specifications on the Exchange's website.
Theoretical Future Price calculation:
Spot - Spot/underlying price
r - interest rate
TTE - time to expiry in years
Final settlement price:
The Final Settlement Price of the Futures or Options Contracts is calculated based on a formula determined and disclosed by the Exchange in the Listed Derivatives Products Specifications on the Exchange's website.
Minimum price fluctuation of the Futures Contract will be specified by the Exchange in the Listed Derivatives Products Specifications on the Exchange's website.
- Limit Order
- Market Order
- Fill or Kill (“FoK”)
- Fill and Kill (“FaK”)
- Hidden Quantity
- The First Session
- Good till Cancelled (“GTC”)
- Good till Date (“GTD”)
Minimum Trade Size:
Cash Settlement: Does not require delivery of the underlying instrument upon exercise.
Physical Settlement: Requires delivery of the underlying instrument upon exercise
American style: Options contracts can be exercised any time before the expiration date.
European style: Options contracts can only be exercised on the expiration date.
Call Options: gives the right, not the obligations to the buyer of the Call Options to buy the underlying asset and require the seller to sell the underlying asset upon request by the buyer of the Call Options at the Strike price for the duration of the Options contract.
Put Options: gives the right, not the obligations to the buyer of the Put Options to sell the underlying asset and require the seller to buy the underlying asset upon request by the buyer of the Put Options at the Strike price for the duration of the Options contract.
|Daily Upper Limit||+20% from previous day’s closing|
|Daily Lower Limit||-20% from previous day’s closing|
Derivatives Underlying :
|MT30 Index Futures||MT30 (MSCI Tadawul 30)|
|Aramco Futures and Options||Aramco|
|AlRajhi Futures and Options||AlRajhi|
|Alinma Futures||Alinma Bank|
|SABIC Futures and Options||SABIC|
|Saudi Telecom Co Futures and Options||stc|
|Saudi Kayan Futures||Saudi Kayan|
|Saudi Electricity Futures||Saudi Electricity|
Contract Months and Year Code:
Example of Futures contract code would be: (Contract Code + Futures + Expiry Year + Expiry Month)
Index Futures: (SF30 + 3 + M )
Single Stock Futures: (ARM + F + 3 + M)
Example of Options contract code would be: (Contract Code + Options+ Expiry Year + Expiry Month + Strick Price + Call/Put )
Single Stock Options: (RJH + O + 3 + M + 130 + C/P)
Corporate action codes:
In case of corporate action, the long name of contracts post Corporate action will contain the below codes in the following sequence:
|# OF CORPORATE ACTION||CODE|
|First Corporate action||X|
|Second Corporate action||Y|
|Third Corporate action||Z|
|Forth Corporate action||Q|
|Fifth Corporate action||R|
Accessibility by Market participant
|Asset Classes||Secondary market access channel||Voting rights||Public offering participation||Private placement participation||Capital gains tax/zakata||With-holding tax||Other restrictions|
|Derivatives||Direct Access||No||No||No||0%||0%||Not Applicable|
|Resident foreign investors & gcc resident investors|
|Derivatives||Direct Access||No||No||No||0%||0%||Not applicable|
|Non-resident foreign investors|
|Derivatives||Direct Access||No||No||No||0%||0%||QFI Limits|
|Clearing Members||General Clearing Member (GCM) and Direct Clearing Members (DCM) connected to Muqassa|
|Settlement Mode||Cash Settlement|
|Settlement Currency||All transactions are settled in Saudi Riyals.|
|Settlement Cycle||Contract are Marked to Market on a daily basis.|
|Margins||Initial Margin, Variation Margin, Add-on Margins.|
|Short Selling||Short selling is embedded in Derivatives market products.|
Trading Cycle and Times
- Step 1: Buyers and sellers submit orders via the member where their accounts are maintained. This may be achieved through one of the channels provided by the member which includes, but not limited to, electronic trading platform. These orders represent the agreement between the member and the investor to execute a specific business transaction as per the investor order.
- Step 2: Orders are entered into the member’s Order Management System (OMS). In accordance with market conditions and the requirement of the investor, the orders within the bank’s OMS are forwarded to the Saudi Exchange via a high-speed network.
- Step 3: Saudi Exchange attempts to match orders according to price and time priority. A variety of order types and special terms are available to the trader. Unmatched orders are maintained in Saudi Exchange until they are matched, canceled or expire.
- Step 4: For matched orders, trades are generated and reported electronically to Muqassa.
- Step 5: The execution of the buy and sell orders that together form a trade; consists of one or more contracts and occurs when the same price is specified by buy and sells orders, for a specified number of contracts.
Trading Days: One session, Sunday through Thursday except official holidays
|Session||Time Schedule for Listed Derivatives Products (as per the official time in the Kingdom)|
|First Session: Pre-open (Opening Auction)||09:00 – 09:30|
|Second Session: Market Open - Trading||9:30 – 15:30|
|Third Session: Market Closed||15:30 – 16:00|
Official Holidays in the Kingdom of Saudi Arabia are:
- National Day of Saudi Arabia (23 September).
- Eid Al-Fitr and Eid Al-Adha.
- Founding day of Saudi Arabia (22 February)
Market will be closed during these holidays and announced on Saudi Exchange website
Derivatives Exchange Membership Fees
|Derivatives Membership Fees|
|Application fee||30,000||One time|
|Other Derivatives Membership Fees|
|Trading Workstation Usage fees for new members per station||11,700||One time|
|Annual Trading Workstation Usage fees per station||3,650||Annual|
|Product||Market Wide Position Limit (MWPL)||Client Position Limit|
|Index Futures||-||10,000 contract|
|Single Stock Futures||20% Open Interest of the Free float number of shares of the underlying security converted into equivalent number of contracts||3% Open Interest of MWPL|
|Single Stock Options||20% of the underlying free float shares||3% of the underlying free float shares|
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