Overview:
The Capital Market Authority mandated new controls on automated trading across the main market, capping algorithmic orders at 20 per trader per security during each open session. The measure aims to safeguard market integrity and efficiency while reducing systemic risk. Meanwhile, crude prices retreated on growing peace hopes, with Brent falling 1.1% to $114.05 per barrel, and business operating revenues grew 2.3% year-over-year to 5.628 trillion riyals.
Details:
The Capital Market Authority issued binding regulations requiring all licensed market institutions to comply with the algorithmic trading caps starting November 1, 2026, with a transition period ending December 31, 2026. The rule applies to securities listed on the main market and scales according to liquidity tiers. Institutions must deploy effective surveillance systems, maintain transaction records, and supply compliance data to the regulator and the exchange.
Oil prices declined Thursday as regional peace discussions tempered supply-disruption concerns. Brent crude fell by 1.27 dollars to $114.05 per barrel, while West Texas Intermediate dropped 1.51 dollars to $101.27. This retreat followed Wednesday gains of 1.3% for Brent and 3% for WTI.
Structural business statistics for 2025 showed operating revenues at 5.628 trillion riyals, up 2.3% annually. Employee compensation rose 6% to 624.1 billion riyals, with salaries and wages comprising 528.9 billion riyals (84.8% of total compensation). Fixed capital formation reached 992 billion riyals with minimal growth of 0.4%.
Outlook:
Investors are monitoring implementation timelines for algorithmic trading rules and their effect on market microstructure. Oil traders are watching for signals from regional peace negotiations and Middle East supply-chain stability over the coming weeks.