CMA seeks public input on algorithmic trading restrictions

Logo of Capital Market Authority (CMA)

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 Oct. 24, 2026, it said in a statement.

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, said the regulator.

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 CMA and the Saudi Exchange with any information or data related to algorithmic trading upon request, it added.