16 Hrs
Source:
الاقتصادية
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Saudi CMA narrows foreign trading rules
The Saudi Capital Market Authority intends to set a minimum margin requirement that market institutions offer to clients when trading in foreign markets. The goal is to reduce the levels of available leverage and improve risk management, amid increasing activity by Saudi investors abroad. The proposal suggests imposing an initial margin of no less than 50% of the transaction's value, with daily monitoring to ensure that the margin does not fall below 25% of the current value of each investment position. The regulation also includes restrictions on the types of assets that can be financed and enforces strict requirements for client suitability and disclosure of benefits derived from securities lending. The new rules are set to be implemented in November 2026. They aim to enhance transparency and control over leverage, which in some current products can reach double the investor’s capital. Additionally, the project establishes a clear framework for financing foreign trades and reinforces investor protection against risks associated with excessive leverage use.
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