DGCX brokers authorized to provide derivatives trading and clearing services

Rick Steves

The DFM is looking to provide multiple asset classes such as; equities, ETFs, equities’ futures, crude oil futures, etc. to meet the growing demand from its diversified base of local and international investors.

Dubai Financial Market (DFM) has obtained the approval of the Securities and Commodities Authority (SCA) to allow the Dubai Gold and Commodities Exchange (DGCX) licensed brokerage firms to become DFM derivatives members and provide derivatives and clearing services for the first time.

There are 21 DGCX brokers licensed by SCA and more are likely to join the list of authorized brokerage firms as the market has received a number of inquiries or interests, which are under study in order to finalize licensing.

The move has been praised Hamed Ali, CEO of DFM and Nasdaq Dubai, who welcomed the SCA’s Chairman decision pertaining to rules of DGCX brokerage firms seeking a DFM derivatives membership.

Hamed Ali sees the decision as an example of SCA’s continuous cooperation, which facilitated the accomplishment of this unprecedented step that enables DGCX members direct and seamless access to the DFM, hence offering new trading opportunities to their clients.

Growing demand from DGCX brokers to provide their services in the DFM

According to the SCA’s decision, DGCX’s brokerage companies can acquire a range of DFM derivatives membership licenses, including: trading brokerage, trading and clearing brokerage, or trading and general clearing brokerage, in line with their DGCX license.

Hamed Ali, CEO of DFM and Nasdaq Dubai, said: “Dubai enjoys a comprehensive ecosystem of financial and commodities markets, and we are committed to further strengthen its integration by streamlining market participants’ access to DFM’s numerous opportunities and reinforce its status as one of the leading regional markets providing multiple asset classes such as; equities, ETFs, equities’ futures, crude oil futures, etc. to meet the growing demand from DFM’s diversified base of local and international investors.

“For instance, the DFM recently launched trading of Oman crude oil futures contracts in collaboration with the Dubai Mercantile Exchange and is rapidly expanding its futures’ market. Furthermore, we are planning to grow this market segment further by introducing new products on other asset classes.”

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