The total trading facilities granted by brokerage firms to clients on the Saudi Stock Exchange (Tadawul) dropped 52 percent year-on-year (YoY) to SAR 4.9 billion in Q2 2017, representing 65 percent of available margin financing, Saudi Arabia’s Capital Market Authority (CMA) said in a report.

 

Available margin facilities also fell 57 percent YoY to around SAR 7.6 billion in the same period.

 

Clients receiving facilities decreased 30 percent to 1,803 in Q2, the market regulator said.

 

The CMA had earlier raised the minimum ratio required to cover margin calls to 34 percent of the transaction’s total value, from the previous 25 percent.

 

The initial margin requirement, which enables clients to open margin accounts, was raised to 50 percent in 2017.

 

Value of margin facilities (SAR mln)

Period

Q2 2016

Q2 2017

Variation

No. of clients

2,575

1,803

(30%)

Available margin facilities (SAR mln)

17,530

7,559

(57%)

Used financing

(SAR mln)

10,177

4,880

(52%)

Used financing (%)

58.1 %

64.6 %

+7%

 

Details of margin facilities since Q1 2016 (SAR mln)

Period

Number of investors

Available margin facilities (SAR mln)

Used financing

(SAR mln)

Q1 2016

2,752

21,697

11,022

Q2 2016

2,575

17,530

10,177

Q3 2016

2,289

15,182

9,003

Q4 2016

2,021

11,776

6,848

Q1 2017

1,910

10,047

5,895

Q2 2017

1,803

7,559

4,880

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