The Saudi Capital Market Authority has launched a consultation on draft rules strengthening supervision of capital market institutions that deal with clients in financial markets outside Saudi Arabia. The proposals clarify suitability obligations and introduce controls for margin transactions in external securities markets. Suitability requirements would apply when institutions deal in foreign markets equivalent to Saudi Arabia’s Main Market or listed debt instruments market. Institutions would assess suitability before dealing begins, with no transaction by transaction reassessment unless the client’s information or circumstances materially change. For margin transactions, clients would have to provide at least 50% of the transaction value, with institutions required to monitor the margin periodically. Such transactions would be prohibited for highly leveraged instruments and shares in companies whose accumulated losses exceed half their capital. The final rules are scheduled to take effect on Nov. 1, 2026.
2026-09-27Saudi Arabia Capital Markets Authority
Saudi Capital Market Authority launches consultation on foreign market dealing rules with 50% minimum margin requirement
The Saudi Capital Market Authority is consulting on rules governing capital market institutions’ dealings with clients in foreign financial markets. The proposals clarify suitability assessments and require at least 50% client margin for external securities transactions, while prohibiting margin dealing in highly leveraged instruments and certain loss-making companies.