Saudi Exchange Cuts Fees to Boost Futures Market

The Saudi Exchange and the clearing house Muqassa implemented fee reductions and revised margin requirements for futures tied to an index of the kingdom's 30 largest and most actively traded firms. Effective August 19, these measures include a one-year waiver of futures transaction and settlement fees.

These reforms aim to lower costs for traders, increase liquidity, and provide institutional investors with better tools to hedge positions and manage risk. The push for a more active derivatives market follows broader capital market liberalization efforts, including the opening of direct stock trading to all foreign investors in February.

Local officials are seeking to attract more international investors and sophisticated trading firms by upgrading infrastructure and reducing trading hurdles as part of a wider strategy to modernize the kingdom's financial sector.