Saudi Capital Market Authority seeks feedback on rules for overseas trading

The Capital Market Authority has invited all interested parties, stakeholders, and participants in the financial market to provide their feedback on the draft regulatory provisions for conducting securities trading activities outside Saudi Arabia. The consultation period will last 30 days, ending on 16 Jumada I 1448 AH, corresponding to October 27, 2026.

In an official statement, the Authority said the project aims to strengthen the regulatory framework governing the activities of financial institutions when dealing with their clients in markets outside the Kingdom.

The Capital Market Authority clarified that suitability requirements apply to transactions executed in foreign financial markets, provided those markets are equivalent to the main market or the listed debt instruments market, in accordance with the Financial Institutions Regulations. Institutions must meet suitability requirements before starting to deal with a client in those markets, without needing to reassess suitability for each subsequent transaction unless there is a significant change in the client's information or circumstances that warrants a review.

Regarding margin trading transactions in foreign markets, the project aims to introduce regulatory controls to mitigate associated risks. Key measures include requiring clients to pay a margin of at least 50% of the transaction value and subjecting them to regular monitoring. The rules also prohibit margin trading in high-leverage instruments or in companies whose accumulated losses exceed half of their capital.

The Capital Market Authority emphasized that all feedback and comments received from the public will be carefully reviewed to finalize the regulations for conducting trading activities outside the Kingdom, which are set to take effect from November 1, 2026. Comments can be submitted via the unified electronic platform for public and government feedback managed by the Saudi Center for Competitiveness, "Istitlaa," during the consultation period at the following link: istitlaa.ncc.gov.sa.