Riyadh, Saudi Arabia: The Saudi Exchange announced today the launch of a Market Making Framework for Exchange Traded Funds (ETFs). The introduction of the framework aims to enhance secondary market liquidity, narrow bid-ask spreads, and enable efficient price formation for listed ETFs on the Saudi Exchange, further aligning the Saudi ETF market with global best practices and enhancing market efficiency.

The ETF Market Making Framework introduces predefined obligations for market makers, grouped into three tiers. The selection of the ETF’s classification is determined based on a mutual agreement between the ETF Fund Manager and the Market Maker.

The framework introduces a set of obligations by the Exchange, including maximum bid-ask spreads, minimum order sizes, and minimum presence time.

Mr. Mohammed Al-Rumaih, CEO of the Saudi Exchange, commented: “The launch of the ETF Market Making Framework represents a significant step in our ongoing journey to advance the efficiency and accessibility of the Saudi capital market and ensure the availability of liquidity in the ETF market while increasing investor confidence. This initiative reflects our commitment to ensuring market depth and transparency, and our focus remains on enhancing infrastructure, broadening market participation, and cementing the Saudi capital market position as a premier global financial hub.”

This framework aims to enhance liquidity, facilitating more frequent transactions, making the market more attractive to both domestic and international investors.

For more information about the ETF Market Making Framework, please visit the following link.

About the Saudi Exchange

The Saudi Exchange is the authorized entity in the Kingdom of Saudi Arabia to act as the Kingdom’s securities exchange (the Exchange), listing and trading in securities. The Saudi stock market is one of the largest stock exchanges among the 72 members of the World Federation of Exchanges, the dominant market in the Gulf Cooperation Council (GCC) and the 3rd largest stock market amongst its emerging market peers. For more information, see: www.saudiexchange.sa

For Media Inquiries:
Arwa Al Draiweesh
arwa.draiweesh@Tadawulgroup.sa