The Capital Market Authority’s (CMA) Board of Commissioners has issued its resolution amending the market conduct regulations by adding the number of front running cases to the prohibited practices.

The move is stated to be part of the CMA’s continuous efforts to develop the capital market and protect investors based on the Capital Market Law issued by a royal decree. This is also part of the initiatives mentioned in its strategy for 2015-2019.

The amended regulations can be viewed on CMA’s website.

One of the prohibited front running cases stated on Article 12 of the amended regulations is that an authorized person, a registered person and any associated person are prohibited from dealing in any security for their own benefit or for the benefit of another client, or for the benefit of an account, which they have an interest in, including any account that they have a discretion on, if such dealing is on the basis of prior knowledge that a client order has been or will be entered on the same security."

In addition, the regulations include any person who obtains through an authorized person or a registered person information related to client orders that have been or will be entered is prohibited from dealing in the security related to such information, if such dealing is for the purpose of benefiting from potential material effect of those orders on the price of that security.

The authority has emphasized that amendments to the Market Conduct Regulations aim to address unfair and unsound practices in securities transactions and in accordance with the best international practices.