As part of the Capital Market Authority's ("CMA") strategic objectives to develop the capital market, and based on the Capital Market Law issued by Royal Decree No. (M/30), dated 2/6/1424 H, the CMA Board issued its resolution approving the Securities Exchanges and Depository Centers Regulations ("Regulations") and amendments to the Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority, which shall be effective as 8/6/1444H corresponding to 1/1/2023G.

The Regulations aims to develop the regulatory framework for the authorisation and supervision of securities exchanges and depository centers for the efficient performance of their duties and obligations, and to further the stability and regulatory environment of the capital market, in addition to enhancing the confidence of capital market participants in support of its growth and prosperity, as well as the development of procedures that ensure effective supervision over securities exchanges and depository centers in line with international best practices and standards in this regard.

The Regulations is a continuation of the CMA's efforts in developing the capital market's infrastructure, and it comes following the approval of the Securities Central Counterparties Regulations which regulate securities clearing activities in the Kingdom and set out the authorisation requirements for such activities in light of the amendments to the Capital Market Law that granted the CMA the authority to establish the regulatory authorisation requirements for securities exchanges, depository centers, and clearing centers, including the requirements for maintaining such authorisation as well as its relinquishment.

 The main elements of the Regulations are as follows:

a) Regulating the authorisation requirements to carry out securities exchanges and depository centers activities in the Kingdom, as well as their capital requirements.

b) Regulating the requirements for securities exchanges and depository centers in conducting their business and in their systems and controls, in addition to the requirements for their governance arrangements.

This comes after the CMA has published the draft Securities Exchanges and Depository Centers Regulations on its website and the Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform), affiliated with the National Competitiveness Center, for public consultation for a period of (60) calendar days.

The CMA will later determine the period for submitting authorisation requests to carry out Securities Exchanges and Depository Centers activities, in addition to the mechanism for submitting such requests.

The Securities Exchanges and Depository Centers Regulations and the amended Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority can be viewed via the following links:

Amended Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority

Securities Exchanges And Depository Centers Regulations