The purpose of these Regulations is to regulate the Exchanges and the Depository Centers business, and to specify the procedures and conditions for obtaining an authorisation and its maintenance.

a) Any reference to the “Law” in these Regulations shall mean the Capital Market Law issued by the Royal Decree No. M/30 dated 2/6/1424 H.

b) Expressions and terms in these Regulations have the meaning, which they bear in the Law and the Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority, unless the context indicates otherwise.

a) The Exchange and Depository Center must comply with the Law, these regulations and the other relevant regulations and rules. The Exchange and Depository Center must provide to the Authority, without delay, with any information, records or documents that the Authority may require for the purpose of implementing the Law and its implementing regulations.

b) The Governing Body and employees of the Exchange and the Depository Center must comply with any request issued by the Authority to appear to explain any matter or to assist in any enquiry relating to implementing the Law and its implementing regulations.

a) The Authority may waive a provision of these Regulations in whole or in part as it applies to an applicant, an Exchange or a Depository Center either on an application from them or on its own initiative.

b) The Authority will make an announcement of the waiver of any provision where it believes that:

• 1) The waiver of the provisions may be of application to more than one Exchange or Depository Center; and

• 2) The publication of the waiver will not materially prejudice the Exchanges or Depository Centers.

The Exchanges and Depository Centers must comply with the following principles:

1) Conduct their business with integrity;

2) Conduct their business with due skill, care and diligence;

3) Protect investors and maintain their confidence by means of fairness, efficiency and transparency in everything related to its affairs;

4) Efficiency of management and control, by taking reasonable care to organise their affairs responsibly; and

5) Consider the interests of the participants, including, without limitation, their members, clients, and securities issuers.