Regulatory Rules, Procedures Amending Terms Used, in the Financial Market, Adopted

Saudi Tadawul Group, the Securities Clearing company (Muqassa) and the Securities Depository center (Edaa), jointly issued the Capital Market Authority (CMA) board decision No.2022-2-1 dated 30/01/2022, which includes the following:

1st: Agreeing to the market rules and procedures described below as:

1 Trading and Membership Rules

2 Amended Securities Clearing House Rules

3 Amended Securities Depository Center Rules

4 Amended Short Selling Securities Rules

5 ِAmended Listed Securities Lending Regulations

6 Amended Membership and Trading Procedures

7 Money market clearing procedures

8 Depository Center Procedures

9 Glossary of Terms Used in the Amended Market Rules

Second: Cancellation of the following documents from the effective date referred to below:

1 Market and position procedures.

2 List of orders aggregation accounts.

 3 Controls and requirements of the Depository center for certificates of deposit issued abroad the Kingdom, in accordance with the instructions for issuing certificates of deposit abroad.

Where the provisions contained, in the procedures of the market and the center, are included in two separate documents, which are the draft procedures of the Depository Center and the draft of the amended trading and membership procedures, according to their respective specializations of both Tadawul Saudi Arabia and Edaa.

Deposit of modified securities, as for the list of orders aggregation accounts, it shall not continue to be used, in the light of the approved functioning business model.

These amendments aim to raise the efficiency and attractiveness of the financial market to traders and investors, at the local and international levels, enhance the infrastructure for the post-trading process and provide a safe and trustworthy financial framework, in line with internationally recognized class and the best practices.

Noting that the drafts of the amended trading and membership rules, the amended Securities Clearing Center rules, the amended Securities Depository Center rules, and the list of terms used, in the amended market rules, which have been published on 07/13/2020, to solicit the views of the public feedback, in the light of the post-trading process.

The decision of the authority’s board stipulated that the amendments to the market rules and procedures described in item the (1st) and the cancellation of the documents described in item the (2nd) mentioned above, starting from 06/03/2022, while continuing to work with the current market rules and procedures, until the effective date indicated, above.

The Saudi Tadawul company also announced the issuance of the Capital Market Authority Board Decision No. (1-118-2021) dated on 08/11/2021, which includes approval to amend the term “Maturity” contained in the list of terms, used in the market rules, to the following: “Maturities”: There are 4 maturities available for trading listed derivative products: the current month, the next month and the two quarters, to come).