Saudi Arabia’s Capital Market Authority has invited stakeholders and market participants to share their views on a draft regulation governing trading activity in financial markets outside the Kingdom.
The consultation period will run for 30 days, until October 27, 2026.
The draft aims to strengthen oversight and protect clients when capital market institutions execute trades on their behalf in foreign markets.
To that end, it sets requirements for assessing the suitability of transactions for clients, alongside controls for trades executed on margin.
Under the proposed provisions, suitability requirements would apply to transactions in foreign markets deemed equivalent to the main Saudi market or to the listed debt instruments market.
Institutions would need to meet these requirements before beginning to deal with a client.
They would not be required to repeat the assessment for every transaction, unless there is a material change in the client’s data or circumstances.
For margin trades, the draft proposes that the client provide coverage of no less than 50% of the transaction’s value, with the coverage level monitored periodically.
It also proposes banning this type of transaction on instruments with high financial leverage.
As well as on shares of companies whose accumulated losses exceed 50% of their capital.
The “Istitlaa” (Survey) platform is receiving feedback, ahead of review and adoption of the final version.
According to the Authority, the provisions are expected to take effect on November 1, 2026.
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