CMA seeks public feedback on raft regulatory provisions for conducting dealing activities in capital markets outside Saudi Arabia
RIYADH — The Capital Market Authority (CMA) called upon all interested and relevant persons and participants in the capital market to share their feedback on the Draft Regulatory Provisions for Conducting Dealing Activities in Financial Markets Outside the Kingdom. The consultation period will last for 30 days, ending on October 27.The draft aims to enhance the supervisory framework regulating…
The Capital Market Authority (CMA) has launched a 30-day public consultation on proposed regulatory provisions governing capital market dealings outside Saudi Arabia. Stakeholders across the market are invited to share their insights to shape the supervisory framework governing these cross-border transactions.
The draft proposal aims to tighten oversight of capital market institutions dealing with clients in financial markets equivalent to Saudi Arabia's Main Market for listed securities or debt instruments. The CMA stresses that suitability assessments must be performed before engaging in such cross-border dealings, without the need for ongoing reassessment unless significant changes impact the client's circumstances.
Margin provisions for securities traded externally will also be bolstered. A minimum 50% margin requirement will apply, with periodic monitoring of margin balances. Additionally, the draft prohibits dealing in highly leveraged instruments or in companies that have accumulated losses exceeding half of their capital.
The CMA emphasizes that public feedback will be given substantial weight when finalizing the provisions, set to take effect on November 1. Comments can be submitted via the Unified Electronic Platform for Consultation with the Public and Government Entities (Istitlaa) during the consultation window.
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