Tadawul approves market-making framework for equity, derivatives markets

Tadawul trading screen

The Saudi Exchange (Tadawul) announced today, Dec. 4, the launch of the market-making framework for equity and derivatives markets to ensure the availability of liquidity and increase price formation efficiency, in line with its efforts to advance the growth of the Saudi capital market as part of the Kingdom’s Vision 2030.

Entities interested in registering as market makers must be exchange members, derivatives exchange members or their clients, Tadawul said in a statement.

Market makers have to ensure the availability of liquidity for a listed security by providing continuous quotes throughout market open session. Tadawul will monitor compliance with market maker obligations, and will provide incentives to the market maker after obligations are met.

Tadawul will publish on its website a list of market makers and the securities on which they are performing this activity.

The Capital Market Authority (CMA) approved the Regulations of Market Making and Market Making Procedures proposed by Tadawul, Argaam reported.