Pursuant to the CMA strategic goals of developing and regulating the capital market, and in line with the Saudi Arabia's Vision 2030, and based on the Capital Market Law issued by the Royal Decree Number (M/30) Dated 02/06/1424H, the CMA Board has issued its resolution to:
a) Amend paragraph (a) of Article (17) of the Market Conduct Regulations to read as follows:
"An authorised person must not aggregate a client's orders with those of other clients or with the authorised person's own orders if the order is for a security traded on the Saudi Stock Exchange, unless such aggregation is performed in accordance with any regulations, rules or procedures the Authority or the Exchange issues.".
b) Amend the term "Order" in the Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority to read as follows:
"In relation to an order from a client:
- an order to an authorised person from a client to execute a transaction as agent; or
- any other order to an authorised person from a client to execute a transaction in circumstances giving rise to similar duties as those arising from an order to execute a transaction as agent.
"order" shall include any decision by an authorised person to execute a transaction in exercise of discretion for a client, an investment fund that it manages or for the purpose of aggregating orders for its clients in accordance with the Market Conduct Regulations. The definition of order shall not include any requests for purchasing a new securities issue".
These amendments aim to allow the aggregation of orders in accordance with any regulations, rules or procedures the Authority or the Exchange issues.
The amended Market Conduct Regulations and the amended Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority can be viewed through the following links:
