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100+ Free Saudi CME-3B Practice Questions

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2026 Statistics

Key Facts: Saudi CME-3B Exam

1,700 SAR

CME-3B examination fee paid to the Financial Academy

Financial Academy - CME-3B Exam Details

30 minutes

Time allowed for the CME-3B exam

Financial Academy - CME-3B Exam Details

17 points

Score required to pass CME-3B

Financial Academy - CME-3B Exam Details

2 chapters

Market Conduct Regulations (52%) and Conduct of Financial Market Institutions (48%)

Financial Academy - CME-3B Exam Details

CME-3

CME-3B plus CME-3A (Securities) together form the CME-3 brokerage qualification

Capital Market Authority - CME examinations

1 February 2023

Date from which passing both CME-3 parts became mandatory for brokerage registration

Capital Market Authority - CME examinations

Arabic and English

Languages in which CME-3B is offered

Financial Academy - CME-3B Exam Details

100

Free original practice questions in this bank

OpenExamPrep

CME-3B is the Saudi Capital Market Rules and Regulations (Brokers) exam, a CMA qualification administered by the Financial Academy with CISI and required to register as a securities broker in Saudi Arabia. The exam runs for 30 minutes, costs 1,700 SAR, and requires a score of 17 points to pass. Its two chapters are Market Conduct Regulations (52%) and Conduct of Financial Market Institutions (48%). Candidates must also pass CME-3A (Securities) for the full CME-3 brokerage qualification, a requirement since 1 February 2023. This 100-question bank provides original practice on CMA market-conduct rules and broker conduct under the Capital Market Institutions Regulations.

Sample Saudi CME-3B Practice Questions

Try these sample questions to test your Saudi CME-3B exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the CMA Market Conduct Regulations, which activity is a clear example of prohibited market manipulation?
A.Placing wash trades that create a false appearance of trading activity in a listed security
B.Buying shares because of a published, audited annual report
C.Selling shares to rebalance a portfolio toward a target allocation
D.Disclosing a material development through a Tadawul announcement
Explanation: Wash trades, where a person trades with themselves or in matched orders to create a misleading impression of activity or price, are a core form of market manipulation prohibited by the Market Conduct Regulations. Genuine trades based on public information are permitted.
2Which body issues and enforces the Market Conduct Regulations that govern conduct in the Saudi capital market?
A.The Capital Market Authority (CMA)
B.The Saudi Central Bank (SAMA)
C.The Ministry of Commerce
D.The Securities Depository Center (Edaa)
Explanation: The Capital Market Authority (CMA) is the statutory regulator of the Saudi capital market and issues and enforces the Market Conduct Regulations. SAMA supervises banks and insurance, while Edaa operates the depository.
3An employee of a listed company learns of an unannounced acquisition and buys the company's shares before the news is public. Under the Market Conduct Regulations this is best described as:
A.Insider trading
B.Best execution
C.Portfolio rebalancing
D.A block trade
Explanation: Trading on material, non-public (inside) information obtained through a position of trust is insider trading, which is prohibited by the Market Conduct Regulations. The acquisition is price-sensitive information that has not yet been disclosed to the market.
4Which of the following best defines 'inside information' under the Market Conduct Regulations?
A.Information of a precise nature, not made public, relating to a security or its issuer, which would likely affect the price if disclosed
B.Any internal company information regardless of its market impact
C.Research that a broker has published to all clients
D.A rumour circulating among traders on social media
Explanation: Inside information is precise, non-public information relating to securities or their issuers that, if made public, would likely have a significant effect on the price. The 'precise', 'non-public' and 'price-sensitive' elements must all be present.
5A trader places large buy orders with no intention of executing them, cancelling them once the price moves, to mislead other participants. This practice is known as:
A.Spoofing
B.Underwriting
C.Securities lending
D.Dividend stripping
Explanation: Entering orders with no intention to execute, in order to create a false impression of demand or supply and move the price, is spoofing, a prohibited manipulative practice under the Market Conduct Regulations.
6Under the Market Conduct Regulations, a person who discloses inside information to another person, other than in the proper course of their employment, has engaged in:
A.Unlawful disclosure (tipping) of inside information
B.Best execution
C.A permitted research distribution
D.Client classification
Explanation: Disclosing inside information to another person outside the proper course of employment is unlawful disclosure, often called tipping, and is prohibited even if the discloser does not trade themselves.
7Making a statement that is misleading, false or deceptive in a material respect to induce another person to deal in a security is prohibited under the Market Conduct Regulations as:
A.Making untrue statements / misleading conduct
B.Suitability assessment
C.A corporate action
D.Custody
Explanation: Knowingly or recklessly making false, misleading or deceptive statements to induce dealing in securities is prohibited conduct under the Market Conduct Regulations. The intent to induce a transaction is the key element.
8Which scenario is most likely to constitute illegal 'front running' by a broker?
A.Trading the firm's own account ahead of a large pending client order to benefit from the expected price move
B.Executing a client's market order immediately at the best available price
C.Aggregating several small client orders into one order for efficiency
D.Declining an order that exceeds the client's available funds
Explanation: Front running is dealing on the firm's or an individual's own account ahead of a client's order to profit from the anticipated price impact. It abuses knowledge of the pending order and breaches the duty to act in the client's best interest.
9Coordinated trading by several parties to push a security's closing price to an artificial level near the end of the session is an example of:
A.Marking the close (price manipulation)
B.Legitimate price discovery
C.A short squeeze caused by market forces
D.An approved stabilisation programme
Explanation: Trading designed to set an artificial closing price, often called marking the close, is a form of price manipulation prohibited by the Market Conduct Regulations because it distorts the price away from genuine supply and demand.
10The Capital Market Law in Saudi Arabia is administered by which authority, giving it power to investigate and sanction market conduct breaches?
A.The Capital Market Authority (CMA)
B.The Saudi Exchange (Tadawul)
C.Muqassa
D.The General Authority of Zakat and Tax
Explanation: The Capital Market Authority administers the Capital Market Law and has statutory powers to investigate suspected breaches and impose sanctions, including referring serious cases to the Committee for the Resolution of Securities Disputes.

About the Saudi CME-3B Exam

CME-3B, the Saudi Capital Market Rules and Regulations (Brokers) exam, is a Capital Market Authority qualification examination required for individuals who want to be registered to perform local or international securities brokerage functions at a CMA-licensed capital market institution. It is administered by the Financial Academy in cooperation with the Chartered Institute for Securities & Investment (CISI) and is offered in Arabic and English. The syllabus has two chapters: Market Conduct Regulations, which covers the prohibition of market manipulation, deceptive practices and insider trading; and Conduct of Financial Market Institutions, which covers licensing, client classification, suitability, client money and asset protection, conflicts of interest, anti-money laundering duties, and the operational rules of the Saudi Exchange (Tadawul), the Securities Depository Center Company (Edaa) and the Securities Clearing Center Company (Muqassa). To obtain the full CME-3 brokerage qualification, candidates must also pass CME-3A (Securities). Passing both parts has been mandatory for brokerage registration since 1 February 2023.

Assessment

Multiple-choice examination with two chapters: Market Conduct Regulations (52%) and Conduct of Financial Market Institutions (48%). CME-3B is the rules-and-regulations part of the CME-3 brokerage qualification, sat alongside CME-3A (Securities).

Time Limit

30 minutes.

Passing Score

A score of 17 points is required to pass; results are reported as pass or fail.

Exam Fee

1,700 SAR, paid to the Financial Academy at registration (separate from the CME-3A exam fee). (Financial Academy in cooperation with CISI, under the Saudi Capital Market Authority (CMA))

Saudi CME-3B Exam Content Outline

52%

Market Conduct Regulations

The CMA Market Conduct Regulations: definitions and prohibition of market manipulation and manipulative or deceptive acts and practices, the insider trading regime and dealing on inside information, prohibition of untrue statements, and the conduct, disclosure and reporting expectations placed on brokers and clients in the Saudi market.

48%

Conduct of Financial Market Institutions

Conduct rules for Capital Market Institutions (formerly Authorised Persons): CMA licensing and registration of staff, client classification (retail, qualified and institutional clients), suitability and appropriateness, order handling and best execution, client money and asset segregation, conflicts of interest and inducements, anti-money laundering and CDD duties, and the trading, membership, clearing and settlement rules of the Saudi Exchange (Tadawul), Edaa and Muqassa.

How to Pass the Saudi CME-3B Exam

What You Need to Know

  • Passing score: A score of 17 points is required to pass; results are reported as pass or fail.
  • Assessment: Multiple-choice examination with two chapters: Market Conduct Regulations (52%) and Conduct of Financial Market Institutions (48%). CME-3B is the rules-and-regulations part of the CME-3 brokerage qualification, sat alongside CME-3A (Securities).
  • Time limit: 30 minutes.
  • Exam fee: 1,700 SAR, paid to the Financial Academy at registration (separate from the CME-3A exam fee).

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

Saudi CME-3B Study Tips from Top Performers

1Study the official CME-3B workbook chapter by chapter, and note that the Market Conduct Regulations chapter carries the larger 52% weight, so prioritise market manipulation and insider trading rules.
2Learn the client classification categories used in Saudi Arabia (retail, qualified and institutional clients) and what each classification changes about suitability, disclosure and protections.
3Remember the current names: the Authorised Persons Regulations were renamed the Capital Market Institutions Regulations, and Tadawul operates as the Saudi Exchange within the Saudi Tadawul Group alongside Edaa and Muqassa.
4Distinguish the roles of Edaa (Securities Depository Center, custody and registry) from Muqassa (Securities Clearing Center, central counterparty clearing and settlement).
5Practise applying the prohibition rules to scenarios, such as identifying insider trading, front running, wash trades and the giving of untrue statements, because the exam tests application not just definitions.
6Because the exam is only 30 minutes, practise answering brokerage-rule questions quickly and decisively, and do not leave items blank since there is no negative marking.

Frequently Asked Questions

What is the CME-3B exam?

CME-3B is the Saudi Capital Market Rules and Regulations (Brokers) exam, a Capital Market Authority qualification administered by the Financial Academy with CISI. It is required to be registered to perform securities brokerage functions at a CMA-licensed institution.

How is CME-3B scored and how long is it?

CME-3B is a 30-minute multiple-choice exam. Candidates must score 17 points to pass, and the result is reported on a pass or fail basis.

How much does the CME-3B exam cost?

The CME-3B examination fee is 1,700 SAR, paid to the Financial Academy at registration. This is separate from the CME-3A (Securities) exam fee.

What is the difference between CME-3A and CME-3B?

CME-3A (Securities) is the CISI-based knowledge exam on instruments, markets, and clearing and settlement, while CME-3B covers Saudi-specific CMA rules and regulations for brokers. Both must be passed for the full CME-3 brokerage qualification.

What chapters does CME-3B cover?

CME-3B has two chapters: Market Conduct Regulations, weighted 52%, covering market manipulation and insider trading prohibitions; and Conduct of Financial Market Institutions, weighted 48%, covering licensing, client classification, client money protection, and Tadawul, Edaa and Muqassa rules.

Are these official CMA or Financial Academy practice questions?

No. These are original OpenExamPrep questions modelled on the published CME-3B syllabus. The CMA, the Financial Academy and CISI provide official workbooks and study material separately.