The Capital Market Authority (CMA) called upon all interested and relevant persons and participants in the capital market to share their feedback on the Draft Regulatory Provisions for the Restrictions on Algorithmic Trading. The consultation period will last for 30 days, ending on 13/05/1448H, corresponding to 24/10/2026.
The Draft aims to developing the regulatory provisions for algorithmic trading and enhancing its integrity and efficiency, in a manner that ensures such trading does not have an adverse impact on the market or cause disruption to market trading, thereby contributing to investor protection and enhancing confidence in the Saudi capital market.
Among the key provisions of the Draft is that the ratio of algorithmic trading orders to executed trades in a listed security during a single trading day shall not exceed 20 orders per executed trade. This requirement applies to securities listed on the Main Market, excluding those classified under the “Very High Liquidity" category in accordance with the securities liquidity classification published on the Saudi Exchange website. The ratio shall be calculated at the level of each trader registered with the Exchange who is responsible for the trading activities of the market member and its clients.
The Draft also requires Capital Market Institutions to establish and maintain the necessary systems and supervisory procedures to ensure the integrity and efficiency of algorithmic trading and prevent any adverse impact on the market. It further requires the establishment of specific methodologies for developing and testing such systems and algorithms prior to their implementation, maintaining the relevant records, and providing the CMA and the Saudi Exchange with any information or data related to algorithmic trading upon request.
The CMA emphasized that the comments from the public shall be taken into full consideration for the purpose of approving the final version of the Draft Regulatory Provisions for Algorithmic Trading in the Capital Market, which shall come into effect as of 01/11/2026. Opinions and comments can be received through the Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform), affiliated with the Saudi Competitiveness & Business Center, during the specified consultation period, through the following link: istitlaa.ncc.gov.sa
