Saudi Arabia puts new limits on algorithmic trading orders

Saudi Arabia’s Capital Market Authority has told brokerage and other capital-market firms to follow new controls for algorithmic trading, with the core limit taking effect November 1. For each covered security on the Main Market, a registered trader may generate no more than 20 automated orders for every transaction actually completed in a day. The rule is meant to curb software that fills the market with orders that are revised or canceled rather than executed. Firms must also test strategies before deployment, monitor them in operation, keep records, and be able to shut systems down when needed; they have until December 31 to adjust. The policy does not ban trading software, but makes its speed and scale more accountable.