RIYADH: The Capital Market Authority has announced the commencement of receiving applications for authorization to carry out commodity exchange activities in the Saudi Market for a period of 123 days, starting on July 1 and ending on Oct. 31.
Through the opening of the application window, the CMA aims to strengthen the capital market infrastructure, increase the range of financial instruments in the Saudi capital market, and diversify its products.
The CMA intends to grant one license to operate as a commodity exchange in the Kingdom during the current application period, in line with the structure of the capital market and while taking into account investor confidence and the stability of licensed markets.
During this period, the focus will be on trading activities in the secondary market for commodity and metals derivatives contracts to enhance the market's attractiveness, benefit market participants, and strengthen the Kingdom’s position in global capital markets.
The announcement of the application period follows the revised Capital Market Law dated Sept. 18, 2019, and the CMA’s earlier announcement regarding the approval of the Securities Exchanges and Depository Centers Regulations, published on July 18, 2022, which indicated that the CMA would subsequently determine the periods for submitting authorization applications for securities exchanges and depository centers, as well as the mechanism for submitting them.
The CMA has called on all parties interested in carrying out commodity exchange activities in the Kingdom to submit applications for authorization, noting that the application specifically pertains to carrying out such activities in accordance with the authorization requirements set forth in the Securities Exchanges and Depository Centers Regulations, using the designated application form.
For further details regarding the authorization process during the current period, including the mechanism for submitting applications, as well as the requirements and procedures, applicants are advised to refer to the document titled Authorization to Carry Out Commodity Exchange Activities in the Kingdom of Saudi Arabia.”
In addition, inquiries from interested parties will be received by the CMA's Market Infrastructure Institutions Supervision Department.
