97% of TASI weight exceeds trading cap

The article discusses the project by the Saudi Capital Market Authority to impose restrictions on algorithmic trading in order to reduce the prevalence of ineffective orders and improve execution quality. The proposal suggests setting a cap of no more than 20 orders per trade for stocks with low to medium liquidity, while exempting highly liquid stocks, including shares of major companies such as Aramco and the National Commercial Bank. The goal is to decrease the market impact of large order bursts, while allowing major companies to trade freely without restrictions. Additionally, the proposal includes requirements for the development and monitoring of trading algorithms to ensure compliance and to enhance overall system performance. According to the plan, most of the most influential stocks in the market will remain outside the 20-order cap but will be subject to other controls to ensure robust oversight of their algorithmic trading activities.

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تنويه: هذا ملخص تم إنشاؤه بواسطة الذكاء الاصطناعي

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