CMA publishes main inquiries about ATS licensing

Logo of Capital Market Authority (CMA)

The Capital Market Authority (CMA) said that it has prepared a list of the main inquiries received regarding applications for obtaining a license to operate in the alternative trading system (ATS) in the Kingdom, along with the authority’s answers to them.

This comes with the aim of enabling those interested in this field to become familiar with the main aspects of licensing to operate in this system, it added.

In this context, the authority stressed the importance of referring to and relying on the Capital Market Law and its relevant executive regulations in order to have a comprehensive understanding of the regulatory aspects related to ATS licensing.

The document “The most prominent inquiries received from the Capital Market Authority regarding applications for obtaining a license to practice market business in the category of alternative trading system in the Kingdom” can be viewed through the link.

CMA announced last year starting to accept applications on Oct. 9 for a license to operate an alternative trading system (ATS) for sukuk and debt instruments. The last date of application is March 31, 2024.

The licensing of ATS for sukuk and debt instruments in the Kingdom will contribute, in the current phase, to improving the secondary market for debt instruments, and providing a base of investors and products in the Saudi financial market, the CMA said.

This will have a positive impact on supporting debt instruments in the Kingdom, expanding the base of investors, providing a wider range of products available in the Saudi financial markets, and enabling effective technical solutions to facilitate linking and trading, it added.