Tadawul lets market orders reach beyond the best price

Saudi Exchange has changed how market orders work on Tadawul’s main market and Nomu, the parallel market. A market order tells the exchange to trade immediately rather than wait for a specified price; previously, it could fill only at the best available price before any leftover shares became a limit order. Now it can continue matching with orders at up to five successive price steps beyond that best price, allowing a larger order to be completed at once when more shares are available nearby. Any shares still unfilled become a limit order at the last price reached, so the change broadens immediate execution without leaving the order open to an unlimited price move. The exchange says the update should make better use of available liquidity and make instant trading more efficient.