CMA approves securities exchanges, depository centers regulations

Logo of the Capital Market Authority

The Capital Market Authority's (CMA) approved the Securities Exchanges and Depository Centers Regulations and amendments to the Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority, which shall be effective Jan. 1, 2023.
 

The regulations aims to develop the regulatory framework for the authorisation supervision of securities exchanges and depository centers for the efficient performance of their duties and obligations, and to further the stability and regulatory environment of the capital market, the market regulator said in a statement. In addition, it aims to enhance the confidence of capital market participants in support of its growth and prosperity, and develop procedures that ensure effective supervision over securities exchanges and depository centers in line with international best practices and standards in this regard.
 

It also builds on the CMA's efforts to develop the capital market's infrastructure, and it comes following the approval of the Securities Central Counterparties Regulations which regulate securities clearing activities in the Kingdom and set out the authorisation requirements for such activities in light of the amendments to the Capital Market Law that granted the CMA the authority to establish the regulatory authorisation requirements for securities exchanges, depository centers, and clearing centers, including the requirements for maintaining such authorisation as well as its relinquishment.
 

There are two main elements of these regulations. First, the regulation of the authorisation requirements to carry out securities exchanges and depository centers activities in the Kingdom, as well as their capital requirements.
 

Second, the regulation of the requirements for securities exchanges and depository centers in conducting their business and in their systems and controls, in addition to the requirements for their governance arrangements.

The CMA will later determine the period for submitting authorisation requests to carry out Securities Exchanges and Depository Centers activities, in addition to the mechanism for submitting such requests.