Riyadh - Mubasher: The Capital Market Authority (CMA) has invited public feedback on a proposed regulatory framework governing algorithmic trading, aimed at enhancing market stability and investor protection.
The consultation period is scheduled to run for 30 days, concluding on 24 October 2026.
A central provision of the draft project establishes a maximum ratio of 20 algorithmic orders to every executed trade per security during a single trading day.
This restriction applies to securities listed on the Main Market, with an exception for those classified as "very high liquidity" on the Saudi Tadawul website.
The ratio will be calculated at the level of each registered trader responsible for the activities of market members and their clients.
The proposed rules mandate that financial market institutions implement robust monitoring systems and testing methodologies for algorithms before deployment.
Companies must also maintain comprehensive records and provide data to the CMA and Saudi Tadawul (Tadawul) upon request.
Following the review of public feedback, the CMA intends for the final regulatory provisions to become effective starting 1 November 2026.
Submissions are being accepted through the "Istitlaa" unified electronic platform.
