Saudi Arabia Greenlights Rules of Market Making

by Jeremy

On Monday, the Saudi Arabia Capital Market Authority (CMA) introduced it authorized new laws and procedures concerning advertising making, proposed by the native Saudi Inventory Trade .

The brand new regulatory framework, Rules of Market Making and Market Making Procedures, focuses on regulating securities market makers (MMs). The regulation covers actions associated to the position of purchase or promote orders at market openings to ensure liquidity for related inventory market devices.

The CMA requires a market maker to be a money or derivatives market member and spell out procedures and guidelines to separate market-making actions from different market actions that the regulated entity performs.

Moreover, MMs should meet a number of new necessities of the CMA. These embrace establishing an account with the Securities Depository Middle and Securities Clearing Middle Firm. The entire market maker’s actions should stay in compliance with the native regulation on capital markets.

Monday’s approval of market-making guidelines is one other step by the Saudi regulator to completely exploit the potential of the funding trade within the nation by rising its liquidity and quantity.

“The Market Maker should assign a Depository Centre Account (the place relevant) and a CCP account restricted to conducting Market Making actions on a selected safety or particular securities in accordance with a Market Making settlement,” the brand new Market Making Rules said.

Dynamic Development of Tadawul

Saudi Inventory Trade, or Tadawul, was based in 2007 as a joint inventory firm, however casual inventory buying and selling started in 1954. At present, it is likely one of the greatest exchanges on the planet, inserting it within the eleventh spot between the London Inventory Trade (LSE) and the Toronto Inventory Trade (TSE) when it comes to total market capitalization ($3.05 trillion).

Nonetheless, native traders will not be solely within the conventional market but additionally in monetary expertise (fintech ). Based on a report revealed final 12 months, the regional fintech sector attracted almost $350 million in capital over the course of twelve months.

In the meantime, a survey from July of this 12 months confirmed excessive ranges of cryptocurrency adoption amongst Saudi Arabia’s residents: three million residents personal cryptocurrencies or have been transacting them in 2022, representing $14% of the nation’s grownup inhabitants.

On Monday, the Saudi Arabia Capital Market Authority (CMA) introduced it authorized new laws and procedures concerning advertising making, proposed by the native Saudi Inventory Trade .

The brand new regulatory framework, Rules of Market Making and Market Making Procedures, focuses on regulating securities market makers (MMs). The regulation covers actions associated to the position of purchase or promote orders at market openings to ensure liquidity for related inventory market devices.

The CMA requires a market maker to be a money or derivatives market member and spell out procedures and guidelines to separate market-making actions from different market actions that the regulated entity performs.

Moreover, MMs should meet a number of new necessities of the CMA. These embrace establishing an account with the Securities Depository Middle and Securities Clearing Middle Firm. The entire market maker’s actions should stay in compliance with the native regulation on capital markets.

Monday’s approval of market-making guidelines is one other step by the Saudi regulator to completely exploit the potential of the funding trade within the nation by rising its liquidity and quantity.

“The Market Maker should assign a Depository Centre Account (the place relevant) and a CCP account restricted to conducting Market Making actions on a selected safety or particular securities in accordance with a Market Making settlement,” the brand new Market Making Rules said.

Dynamic Development of Tadawul

Saudi Inventory Trade, or Tadawul, was based in 2007 as a joint inventory firm, however casual inventory buying and selling started in 1954. At present, it is likely one of the greatest exchanges on the planet, inserting it within the eleventh spot between the London Inventory Trade (LSE) and the Toronto Inventory Trade (TSE) when it comes to total market capitalization ($3.05 trillion).

Nonetheless, native traders will not be solely within the conventional market but additionally in monetary expertise (fintech ). Based on a report revealed final 12 months, the regional fintech sector attracted almost $350 million in capital over the course of twelve months.

In the meantime, a survey from July of this 12 months confirmed excessive ranges of cryptocurrency adoption amongst Saudi Arabia’s residents: three million residents personal cryptocurrencies or have been transacting them in 2022, representing $14% of the nation’s grownup inhabitants.

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