Saudi CMA raises commission on Tadawul trades

Saudi Arabia’s market regulator, the Capital Market Authority (CMA), has increased the commission on trades on the kingdom’s Tadawul stock exchange. 

The CMA has raised the commission from 12 basis points to 15.5 basis points per transaction, or SAR 15.5 for every transaction worth SAR 10,000, and has eliminated the fixed commission on equity transactions equal to or less than SAR 10,000.

The new rates will come into effect on July 17, the regulator said in a statement on Thursday.

The new trading commission will be shared between the CMA, Tadawul, and other authorized persons in a certain ratio that will be announced after reviewing the service fees provided by Tadawul, it said.

The CMA is also reviewing the current procedures used for collecting fines and penalties from violators of market law in order to develop mechanisms to compensate those affected.

The affected person will be reimbursed using the recovered illegal profits resulting from the violations, instead of the fines being deposited into CMA's account.