Mubasher Info
09-May-2024
The concept of trading stocks within the same session:
The mechanism of trading stocks within a trading session involves selling a portion or all of the previously purchased stocks or buying a portion or all of the stocks that have been sold and are available to the client within the same session. This mechanism aims to increase market liquidity and efficiency, and enables investors to take advantage of price differentials within a single day. This mechanism is considered one of the most important facilities provided by advanced exchanges to enhance market liquidity and efficiency.
Securities allowed for trading:
Trading within a trading session is only allowed for securities listed in Lists (A) and (B), which have criteria set by the exchange management and approved by the regulatory authority. These lists are reviewed every six months by a specialized committee at the exchange, and the announcement is made the following day. They have the right to include shares of new offerings in these lists if they meet the specified quantitative criteria in the lists, and after studying a trading period extending for at least twenty trading sessions following the first session of trading.
Procedures for trading stocks within the same session:
When a person intends to buy securities, they choose a licensed brokerage firm by the General Authority for Financial Regulation to trade according to this system. When selling or buying, the transaction must be settled within the same session. If settlement is not achieved within the same session, it is settled at the agreed-upon times. The person selects a listed security on the stock exchange that meets the criteria set by the regulatory authority. They cannot reserve a balance greater than 1/10,000 of the total listed shares of the company on the stock exchange, and the regulatory authority can adjust the percentage in cases it determines to be suitable for the market and traders. The clearing and settlement company handles the cash and paper positions for the trading operations within the same session, and if there are transactions involving two parties, they are settled at the usual times.
Brokerage firm obligations:
The reserved balance that the client is allowed to buy on any given day cannot exceed 1/10,000 (ten thousand) of the total listed shares on the stock exchange, and if the regulatory authority adjusts the percentage in specific cases to make it suitable for the market and participants.
The company executes transactions on stocks within the same session based on client orders and using the same model of orders specific to trading stocks.
If the order is to sell and then buy, the company reserves the quantity that the client requested to sell from the available balance they have.
