The authority said in a statement that the cancellation process is intended to reduce costs for dealers in the market, in a way that serves to improve liquidity, increase local market competitiveness and broaden the market base. local investors in public debt issues.
The Autorité clarified that by canceling its share of the sukuk and bond trading commission, it confirms the firmness of its orientations in its commitment to stimulate the activities of the secondary market in debt securities, and to consider these bonds as term, without exceptions, in line with its strategic objective related to the development of the sukuk and debt securities market in order to enhance their attractiveness to issuers and investors.
It is hoped that the decision will help motivate issuers to list sukuk and bonds denominated in local currency in the Saudi debt market, and encourage investors to trade these instruments, which helps to deepen the debt market and increase its liquidity, by diversifying financing options. for the public and private sectors, creating a new asset class, for all investor segments.
The decision to remove the commission portion of the bond trading commission is an extension of exemptions and financial consideration changes for debt securities trading over the past 14 years.
It should be noted that the sukuk and debt securities market has undergone a number of developments over the past few years, including the reduction in face value of government sukuk from (one million Saudi riyals) to (one thousand riyals Saudis) as part of an initiative to increase exchange rates. in the market, in addition to the international link between the Securities Depository Center Company and Clear Stream, and to make debt securities trading accessible to all foreign investors.
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