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 to publish the draft of Securities Exchanges and Depository Centers Regulations (the “Draft Regulations"), for public consultation for a period of (60) calendar days ending on 11/8/1443H corresponding to 14/3/2022G.
The Draft 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.
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, the Draft Regulations is a continuation of the CMA's efforts in developing the capital market's infrastructure 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 Draft Regulations are as follows:
a)Regulating the authorisation requirements to carry out 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.
The CMA, with full gratitude, would receive the opinions and comments of relevant and interested persons, through any of the following:
a)The Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform), affiliated with the National Competitiveness Center, through the following link: (istitlaa.ncc.gov.sa).
b)The prescribed form through the following email: (Laws.Regulations@cma.org.sa).
All comments will be taken into full consideration for the purpose of finalizing the Draft Regulations.
The Draft Regulations can be viewed via the following link:
Draft Securities Exchanges and DepositoryCenters Regulations
Prescribed form for providing comments
