Saudi Arabia Opens Three Draft Regulations by Capital Market Authority for Public Consultation

The Istitlaa platform, affiliated with the Competitiveness and Business Center, has opened 31 draft projects for public consultation, including three draft regulations from the Capital Market Authority related to dealing, trading, and offering activities in the market.

The first project concerns provisions for engaging in dealing activities in financial markets outside the Kingdom, receiving stakeholder feedback until October 27, regulating the operations of entities licensed from outside the country.

The second project addresses restrictions on algorithmic trading, with consultation continuing until October 24, while the third project covers enhanced offering practices in underwriting, book building, and pricing until October 22.

The platform enables interested parties to submit their feedback on the proposed texts before their approval, granting each project a separate consultation deadline, thus providing room for comment before the regulations are issued in their final form and implementation begins.

What do these terms mean?

Istitlaa platform: A Saudi government channel for presenting draft regulations and receiving public feedback. Book building: A phase in which investors register their orders to determine the offering price. Algorithmic trading: Automated execution of buy and sell transactions using computer software.