<!-- Swiftype Variables -->


Saudi stock exchange completes switch to T+2 settlement cycle

Visitors at Tadawul, the Saudi Arabian exchange, watch stock movements on giant video screens.

Tadawul, the Saudi stock exchange, on Wednesday announced it had successfully completed its transition to a two-day settlement cycle for listed securities.

Also, Tadawul introduced securities lending and covered short selling of its listed securities.

The transition to T+2 from the previous T+0, or same-day, settlement cycle and the addition of securities lending and short selling were done to align the Saudi exchange with a growing global trend to T+2, said a Tadawul news release.

In the U.S., the Securities and Exchange Commission on March 22 signed off on the move to T+2 from T+3, effective Sept. 5, in an effort to enhance efficiency and reduce risk. The European Union has used a T+2 cycle since 2014.