24 Hrs
Source:
الاقتصادية
Saudi project to improve oversight of global markets
The Saudi Capital Market Authority has proposed a draft to enhance the regulatory framework for financial institutions' activities when engaging with their clients in foreign markets. The consultation period lasts for 30 days, ending on October 27, 2026. The aim of the draft is to impose suitability requirements on foreign transactions that are similar to those of the main market or listed debt instruments, requiring institutions to ensure these requirements are met before dealing with clients. Reassessment would only be necessary in the event of a material change in the client's circumstances. Additionally, the draft establishes controls for margin-covered trades on securities, including requiring clients to pay a margin of at least 50%, along with periodic monitoring of these trades. It also prohibits dealing in highly leveraged instruments or with companies that have accumulated losses exceeding half of their capital. All feedback from the public will be reviewed before finalizing the regulations, which are set to officially take effect on November 1, 2026.
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