CMA LAW: Circular No. (8) of 2022 Regarding the Market Maker Obligation to Provide the CMA with Weekly Reports through the Electronic Portal

In reference to the workshop held on May 29, 2022 concerning the Market Maker’s weekly report system, and in the framework of the Capital Markets Authority’s endeavor to implement the provisions of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, its Executive Bylaws and their amendments, the CMA confirms that it is necessary for all persons licensed to practice the activity of the Market Maker to submit  weekly reports through the CMA’s electronic portal as of July 3, 2022, according to the mechanism that was explained and clarified in the workshop.

This obligation is pursuant to the provisions of Article (1-41-23) and Article (1-41-24) of Module Five (Securities Activities and Registered Persons) of the Executive Bylaws of Law No. 7of 2010, which are as follows:

Article 1-41-23:

A Market Maker shall provide the Authority with a weekly report on the following:

1. A summary of the buy and sell deals executed in each trading session.

2. The average daily difference between the buy price and sell price.

3. The average size of buy and sell orders entered in each trading session.

4. The percentage of executed orders during the day out of the total value of orders.

 Article 1-41-24:

“A Market  Maker shall  submit  to  the  Authority a  weekly  list  of  its  ownership  percentages in the Shares in which the Market Maker operates, and any changes occurring to those percentages."

In conclusion, the CMA is making all possible efforts to improve and simplify communication mechanisms with all traders in securities activities.

Othman Al-Issa

Acting Managing Director

Issued on: 29/06/2022

Copy of the Official Document

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