RIYADH: Saudi Arabia’s stock exchange has announced the launch of its Fixed Income Market Making Framework to ensure the availability of secondary market liquidity.

The launch of this system will also increase price formation efficiency in the Kingdom’s capital market, according to a press statement.

The move aligns with the Capital Market Authority’s objective of transforming Saudi Arabia’s stock market into a key pillar of the nation’s economy under the directives of Vision 2030’s Financial Sector Development Program.

Introducing the Fixed Income Market Making Framework is a significant step in further developing the Saudi capital market, cementing its position as a leading regional financial hub, the statement added.

“As the Saudi capital market continues to evolve, we have seen an increase in debt issuances in recent years. In response to this growing demand, we have introduced a new Fixed Income Market Making Framework demonstrating our continued efforts to support the development and depth of the debt market and position the Saudi Exchange as a global destination in this field,” said Mohammed Al-Rumaih, CEO of the Saudi Exchange. 

According to the statement, the framework is a strategic initiative to stimulate secondary market activity in the fixed-income sector.

The Saudi Exchange’s decision comes after the successful onboarding of market makers in the equities and derivatives divisions in 2023.

Commonly known as the debt securities or bond market, the fixed-income sector is where companies can issue new debt — the primary market — or buy and sell existing debt securities, known as the secondary market, usually in the form of bonds.

Saudi Exchange said the new framework aims to enhance liquidity and facilitate more frequent transactions, making the Kingdom more attractive to domestic and international investors. 

“We aim to enhance the experience of investing in fixed-income instruments and attract a broader range of investors both regionally and internationally,” added Al-Rumaih. 

Under the Market Making Regulations, market makers are required to be members of the Saudi Exchange. They can conduct activities as principals on their accounts or as agents on behalf of clients. 

Market makers could continuously buy and sell orders for the relevant listed debt security during official trading hours to ensure the availability of liquidity for that listed debt security following the provisions of the Market Making procedures and the agreement, the statement added.

“Saudi Exchange will publish on its website a list of market makers and the securities on which they are performing this activity, and will provide incentives after the obligations are met,” said the exchange in the statement. 

SINGAPORE: Oil prices gained for a second session on Thursday, supported by worries over supply amid US sanctions on Russia, a larger-than-forecast fall in US crude oil stocks, and an improving global demand outlook.

Brent crude futures rose 25 cents, or 0.3 percent, to $82.28 per barrel by 7:46 a.m. Saudi time, after rising 2.6 percent in the previous session to their highest since July 26 last year.

US West Texas Intermediate crude futures rose 28 cents, or 0.4 percent, to $80.32 a barrel, after gaining 3.3 percent on Wednesday to their highest since July 19.

US crude oil stocks fell last week to their lowest since April 2022 as exports rose and imports fell, the Energy Information Administration said on Wednesday.

The 2 million-barrel draw was more than the 992,000-barrel fall analysts had expected in a Reuters poll.

The drop added to a tightened global supply outlook after the US imposed broader sanctions on Russian oil producers and tankers. The new US sanction measures have sent Moscow’s top customers scouring the globe for replacement barrels, while shipping rates have surged too.

The Biden administration on Wednesday imposed hundreds of additional sanctions targeting Russia’s military industrial base and evasion schemes.

Meanwhile, the Organization of the Petroleum Exporting Countries and its allies, which have been curtailing output collectively over the past two years, are likely to be cautious about increasing supply despite the recent price rally, said Commodity Context founder Rory Johnston.

“The producer group has had its optimism dashed so frequently over the past year that it is likely to err on the side of caution before beginning the cut-easing process,” Johnston said.

Limiting oil’s gains, Israel and Hamas agreed to a deal to halt fighting in Gaza and exchange Israeli hostages for Palestinian prisoners, according to an official.

On the demand front, global oil expanded by 1.2 million barrels per day in the first two weeks in 2025 from the same period a year earlier, slightly below expectations, JPMorgan analysts wrote in a note.

The analysts expect oil demand to grow by 1.4 million bpd year-on-year in coming weeks, driven by heightened travel activities in India, where a huge festival gathering is taking place, as well as by travel for Lunar New Year celebrations in China at the end of January.

Some investors are also eying potential interest rate cuts by the US Federal Reserve before the end of the year following data on an easing in core US inflation — which could lend support to economic activities and energy consumption.