CMA OKs amended market making regs, procedures

Logo of Saudi Exchange (Tadawul)

Tadawul announced the issuance of the Capital Market Authority’s (CMA) board decision, dated Dec. 15, 2025, approving the amended market making regulations, as well as its decision, dated Nov. 17, 2025, approving the amended market making procedures.

The amendments aim to regulate the market making activity among exchange traded funds (ETFs). This is to enhance secondary market liquidity in the ETF market, creating greater opportunities for investors and issuers, in line with global best practices, said Tadawul.

It noted that the amended regulations and procedures shall be effective starting from its publishing date.

In a separate statement, Tadawul announced the launch of the ETFs market making framework, effective as of Feb. 8.

It explained that the ETFs framework aims to enhance secondary market liquidity in the ETF market, creating greater opportunities for investors and issuers, in line with global best practices. In addition, this will help narrow the bid–ask spread and improve the efficiency of the price setting process in the ETFs market, in line with global best practices.

Market makers ensure the availability of liquidity for listed ETFs by providing continuous quotes throughout market open session. Tadawul will monitor compliance with market maker obligations and will provide incentives for conformists, the statement added.

Tadawul also confirmed that all listed ETFs are eligible for market-making activities.

The new regulatory framework sets out a range of obligations for market makers and classifies these obligations into three categories—A, B, and C—with the appropriate category to be determined based on a mutual agreement between the fund manager and the market maker, said Tadawul.

It added that the framework further grants market makers a full 100% exemption from trading fees, provided they comply with the market’s specified requirements, which include minimum order presence in line with the maximum bid–ask spread and the minimum order size.

Tadawul will publish on its website a list of ETFs with its associated market makers.

- The Amended Market Making Regulations (click here).

- The Amended Market Making Procedures (click here).

- For more information about the ETF Market Making Framework (click here)