11 Hrs
Source:
الاقتصادية
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97% of TASI weight outside trading restrictions
The Saudi Securities Authority has proposed a new regulation for algorithmic trading, focusing on setting a cap on the number of orders sent per execution. Specifically, it limits to no more than 20 orders for securities within low- and medium-liquidity categories, while exempting highly liquid stocks such as Aramco and major banks, which account for about 97% of the Tadawul index weight. This restriction aims to reduce the density of ineffective orders and improve the quality of trades, while maintaining control over stocks with larger weights. The plan also includes the continued development of monitoring systems and performance oversight for trading algorithms. The proposal does not specify limits on the amount of funds or the number of transactions, but only restricts the relationship between orders and executions to ensure algorithmic activity remains stimulating and effective without causing market disruptions.
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