Saudi Regulator Proposes Algorithmic Trading Limits

Saudi Arabia's Capital Market Authority has opened a public consultation on draft regulatory provisions that would restrict algorithmic trading in the Kingdom's markets. The 30-calendar-day consultation is open to feedback and closes on 24 October 2026.

The main proposal would cap the number of algorithmic orders at no more than 20 The limit would be calculated separately for each registered trader and would apply to securities on the Main Market, excluding those classified as "Very High Liquidity."

Under the draft rules, Capital Market Institutions would be required to put in place systems and supervisory procedures designed to protect market integrity and efficiency. Firms would also need documented methods for developing and testing their trading algorithms before putting them into use.

What firms would need to do

The proposal would oblige firms to retain relevant records and to provide algorithmic-trading information or data to the Capital Market Authority or the Saudi Exchange upon request. These measures aim to give regulators clearer oversight of automated trading activity.

For the wider investing community, the move signals continued efforts to keep trading orderly and fair as automated strategies grow more common. It is important to note that the proposal is not yet a final regulation, and no confirmed implementation date has been announced. Investors and market participants who wish to comment can do so during the consultation window before it closes.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving