CMA Consults Public on Algorithmic Trading Limits

Saudi Arabia's Capital Market Authority has opened a public consultation on draft restrictions governing algorithmic trading in the Main Market. The consultation runs for 30 calendar days, with feedback accepted until 24 October 2026, and submissions collected through the Istitlaa platform for consulting the public and government entities.

Under the proposed rules, algorithmic-trading orders must not exceed 20 orders The limit would apply to Main Market securities but would exclude those classified as "Very High Liquidity" under the Saudi Exchange liquidity classifications.

The cap would be calculated separately for each trader registered with the Saudi Exchange who is responsible for trading activities on behalf of a market member and its clients. The draft rules are proposed to take effect on 1 November 2026.

What firms would need to do

The draft also sets out obligations for Capital Market Institutions. Firms would be required to maintain systems and supervisory procedures that protect market integrity and efficiency, establish clear methods for designing, developing, and testing algorithms before they are deployed, retain related records, and provide any requested information or data to the Capital Market Authority and the Saudi Exchange.

For investors and market participants in Riyadh, Jeddah, and beyond, the proposals aim to reduce excessive order activity and support orderly, transparent trading. Interested parties can review the draft and share their views through the Istitlaa platform before the deadline.

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