CMA ratifies amendment to market conduct regulations

The Capital Market Authority’s (CMA) board approved the amended market conduct regulations to be effective as to their publication date.

The amendments aim to enhance the protection of securities investors against unfair or unsound practices that involve fraud, deceit, or manipulation, the market regulator said in a statement today, Jan. 26, 2021.

In addition, the changes target developing the capital market’s statutory environment and promote its stability, develop procedures to minimize risks associated with securities transactions, achieve protection for investors, as well as enhance confidence in the capital market.

The main elements of the amendments are:

1) Developing the provisions regulating the prohibition of acts or practices involving manipulation or deceit, by clarifying that the scope of such acts or practices shall include promoting the purchase of a security for the purpose of selling that security or promoting the sale of a security for the purpose of purchasing that security

2) Developing the provisions regulating the prohibition of insider trading and disclosure of inside information for the purpose of including front running trades.

The approval of the amended market conduct regulations come after the CMA published the draft amendments of the regulations on its website for a period of 30 days for public consultations.

The amendments can be viewed via the following link: