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.