01.17.2025

Saudi Exchange Launches Fixed Income Market Making Framework

01.17.2025
Saudi Exchange Launches Fixed Income Market Making Framework

The Saudi Exchange announced the launch of its Fixed Income Market Making Framework which intends to ensure the availability of secondary market liquidity and increase price formation efficiency in the Saudi capital market.

The introduction of the Fixed Income Market Making Framework is a significant step in the further development of the Saudi capital market, cementing its position as a leading regional financial hub, under the directives of Vision 2030’s Financial Sector Development Program.

The new Fixed Income Market Making Framework is a strategic initiative designed to stimulate secondary market activity on the fixed income market, This follows the successful onboarding of Market Makers on the Equities and Derivatives Market in 2023. This new framework aims to enhance liquidity, facilitating more frequent transactions, and thereby making the market more attractive to both domestic and international investors. The launch will also contribute significantly to a deeper and more balanced Saudi capital market.

Commenting on the launch, Mohammed Al Rumaih, CEO of the Saudi Exchange said, “As the Saudi capital market continues to evolve, we have seen an increase in debt issuances in recent years. In response to this growing demand, we have introduced a new Fixed Income Market Making Framework demonstrating our continued efforts to support the development and depth of the debt market and position the Saudi Exchange as a global destination in this field. We aim to enhance the experience of investing in fixed income instruments and attract a broader range of investors both regionally and internationally.

Under the Market Making Regulations, Market Makers are required to be Exchange Members. These Exchange Members will be able to conduct market making activities in the capacity of principal on its own account or as an agent on behalf of clients. The Market Maker continuously enters buying and selling orders for the relevant listed debt security during official trading hours to ensure the availability of liquidity for that listed debt security in accordance with the Market Making Regulations.

Saudi Exchange will publish on its website a list of Market Makers and the securities on which they are performing this activity, and will provide incentives after the obligations are met.

For more information on the Saudi Exchange’s Market Making Framework, please visit: Obligations and Incentives

Source: Saudi Exchange

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