As of October 4, 2026, “Saudi Tadawul” began implementing the update to the market order mechanism in the main market and “Nomu - Parallel Market,” in a step aimed at raising the efficiency of implementation and improving the use of liquidity available in the market.
What's the market order?
A market order is an order to buy or sell that is executed immediately at the best prices available in the order book, without the investor specifying a specific price.
This type of order is usually used when the investor's priority is speed of execution rather than obtaining a specific price.
How did the previous mechanism work?
Previously, a market order was executed only on the available quantity at the best price.
If an investor wants to buy 10,000 shares, and the quantity available at the best price is only 3,000 shares, then this quantity is executed, while the remaining part turns into a limit order at the price of the last executed part.
What has changed now?
Under the new mechanism, a market order is now able to be executed across multiple price levels, within a range of up to five price units starting from the best available price.
Thus, the order can access additional liquidity available at nearby price levels, instead of being limited to the quantity available at the best price only.
What happens if the stock is not sold out?
When the maximum allowed limit is reached, or if there are no additional quantities within the specified range, the remaining unexecuted quantity is converted into a limit order at the last execution price.
What is the purpose of the update?
Through this step, Saudi Tadawul aims to:
- Immediately increase the quantities executed.
- Improving the use of liquidity available in the market.
- Reducing the possibility of large parts of orders remaining unexecuted.
- Enhancing the efficiency of the trading mechanism.
- Support market depth and improve investor experience.
Does the update include all markets?
No, the update applies to stocks listed on the main market and “Nomu - Parallel Market” only, while it does not include the derivatives market that continues with the current mechanism.
Why did the update gain interest from investors?
Because the mechanism of executing orders directly affects the speed of executing trades and the efficiency of accessing liquidity, especially in stocks that witness gaps between price levels or limited trading volumes.
The Iraqi Oil Tanker Company (state-owned) transported two million barrels of Iraqi crude on board a giant oil tanker (VLCC) through the Strait of Hormuz, in what its general manager described, on Saturday evening, as the first operation of its kind carried out by the company in decades.
This means that the company is transporting crude oil through the strait rather than delivering it at the port of Basra, giving the Iraqi Oil Marketing Company (SOMO) greater flexibility regarding how and where it sells the crude.
The company's general manager, Ali Qais Abdul Jabbar, said in a press statement that this step may allow Sumo to benefit from better sales and pricing opportunities.
He added that the Iraqi Oil Tanker Company is also working to purchase and own specialized tankers for transporting crude oil, to expand its fleet and enhance its ability to compete with regional shipping companies.
Iraq had previously obtained Iranian approval for Iraqi oil tankers to cross through the Strait of Hormuz, which Iran had effectively closed during its war with America, since late last February.
About 20 percent of the world's oil and gas supplies passed through the strait before the war.
