Saudi Arabia’s Capital Market Authority (CMA) has told all capital market institutions to cap the ratio of algorithmic trading orders to executed orders at 20 per trading day for each registered trader in each listed security, starting November 1, 2026.
The limit covers securities listed on the Main Market during the open market session, the second session of the trading day. It is applied according to each security’s liquidity classification, which has high, medium, low and very low categories.
The CMA issued the requirements in a circular to market institutions on Thursday, Al Eqtisadiah reported. The regulator said the rules aim to improve the safety and efficiency of trading and limit potential negative effects on the market.
The circular is based on a decision by the CMA board. Institutions have until December 31, 2026, to bring their operations into line with the new rules.
Controls on trading systems
The regulator also told institutions to comply with Article 54 of the Capital Market Institutions Regulations.
That article requires them to keep control systems and procedures that ensure algorithmic trading is safe and efficient and does not harm the market. Institutions must also set methods to develop and test systems, algorithms and strategies before using them.
They must monitor orders entered, issue alerts and reports, and switch off algorithmic trading systems or algorithms when needed. They must keep records of the trades and systems and give the CMA and the Saudi Exchange related information on request.
The CMA put draft provisions on restrictions on algorithmic trading out for public consultation on September 24 for 30 calendar days.
