Riyadh – Mubasher: The Saudi Exchange (Tadawul) has officially announced the approval of SAB Invest to act as the first designated market maker under the Exchange Traded Funds (ETF) Market Making Framework, which was launched earlier in 2026.
This landmark appointment, which specifically targets the SAB Invest Saudi Quant ETF, represents a significant step in Tadawul’s efforts to enhance liquidity and trading efficiency within the growing exchange-traded fund sector across Saudi Arabia, according to an official statement.
SAB Invest is scheduled to commence its market-making responsibilities for this fund on 18 May 2026, while the mandate applies to the SAB Invest Saudi Quant ETF that is identified by the trading symbol 9402.
The appointment is governed by a strict set of regulatory requirements as defined in the Market Making Regulations and the Market Making Procedures.
Under the terms of the approval, SAB Invest must adhere to three primary performance obligations to remain in compliance with the framework.
The first obligation is a minimum presence of orders, which requires the market maker to maintain active buy and sell quotes for at least 80% of the trading day. This high level of availability is intended to minimize periods of illiquidity and ensure that the ETF remains tradable throughout the majority of the session.
The second requirement concerns the minimum size of the orders placed by the market maker, where SAB Invest is obligated to maintain a minimum order size of SAR 50,000 which represents a threshold ensuring that there is sufficient depth in the order book to accommodate standard trade volumes without causing significant price fluctuations. By providing this guaranteed volume, the market maker helps stabilize the market for both retail and institutional investors.
The third obligation is the maintenance of a maximum spread, which has been set at 2% to represent the difference between the highest bid price and the lowest ask price in the market.
By capping this spread at 2% the framework ensures that transaction costs remain within a reasonable range for investors, preventing excessive price gaps that can occur in less liquid instruments.
These rules are designed to ensure that market makers provide consistent liquidity and maintain an orderly trading environment for all market participants. By appointing a formal market maker, Tadawul aims to provide investors with greater confidence in the price discovery process and the ease of entering or exiting positions in the SAB Invest Saudi Quant ETF.
