The Capital Market Authority (“CMA") announced its approval on the Regulations of Market Making and Market Making Procedures proposed by the Saudi Exchange. The CMA's approval aims to regulate the activities of listed securities market making, and impacts resulted from approving the market making registration application, and description of mechanism of practicing market making activities on securities. 

The Regulations include the Market Maker's activities through providing continuous listed securities buy/sell orders during the market open session to provide liquidity to the relevant listed securities. Also, among the conditions of the Market Maker, it shall have a membership of the market or derivatives market and shall have the written policies and procedures to separate between the market making activities and any other activities practiced by the Maker. The Market Maker shall also have the security and technical requirements necessary for practicing the activity, or any other condition proposed by the market and approved by the CMA.

The Regulations set out the Market Maker's liabilities; among them: to assign an account at the Securities Depository Center (Edaa) (where applicable) and Securities Clearing Center Company (Muqassa) that are limited to practicing activities of market making only on specific security (securities) in accordance with the Market Making Agreement. Also, all activities of market making practiced by the Market Maker shall be in compliance with the Capital Market Law, its Implementing Regulations and the Market Rules, and any other relevant laws.

The CMA's approval on the Market Making Regulations and Procedures comes as part of the CMA's continuous efforts to create potentials facilitating trading process, including increasing efficiency and volume of liquidity in the capital market through providing continuous listed securities buy/sell orders.

The Regulation of Market Making can be viewed on “Saudi Exchange” website via the following link (Here​)