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Providing Brokerage Services in Commodities in the UAE: futures and derivatives trading

For the purpose to perform as a trader (broker) of commodities in the UAE the company (a legal entity incorporated according to the UAE law or foreign company incorporated outside the UAE) should fulfill the procedures to obtain a membership from DGCX (Dubai Gold and Commodities Exchange).

Broker Members are entitled to trade on all the products listed by DGCX either on proprietary basis or on behalf of clients. Broker Members must meet minimum Net Current Tangible Asset (NCTA) requirements specified by Exchange, and comply with a comprehensive set of regulatory requirements specified in the DGCX By-Laws. Broker Members proposing to deal on behalf of clients, will be subject to statutory regulations.

Broker Members will require a license from the Securities and Commodities Authority UAE (SCA). Following provisional admission to DGCX Broker Membership, the Exchange will submit the necessary papers to the SCA on the applicant’s behalf.

Applicants for DGCX Broker Membership incorporated outside the UAE will be required to provide details of the regulatory arrangements to which they are subject to in their home jurisdiction.

Before an applicant is approved as a Broker Member, the Exchange will undertake the necessary due diligence; for example:

  • The applicant’s financial resources
  • The applicant’s expertise and experience as a broker in commodities, derivatives markets and/or in securities, or other similar markets
  • The applicant’s likely contribution to the liquidity and development of DGCX markets.
  • Fees and Charges
  • Summary of Fees and Minimum Net Current Tangible Asset (NCTA) Requirements

The first stage of applying for DGCX membership is completing the application form. All applications should be accompanied by a non-refundable Application fee.  The Application fees for Broker and Trade membership is US$ 1,000. The application fees are non-refundable, even if the application is unsuccessful.

Monies received into DGCX accounts in respect of Membership must represent the full fees as notified. Broker Memberships are currently offered at an Admission Fee of US$ 150,000.

The membership fee will be refunded in full if the application is not approved. Refund requests for membership fees will be considered at the Exchange’s discretion whilst the application is in progress. Please note that fees become non-refundable once a membership application has been approved.

 

All associated remittance costs, whether incurred through outward transfer charges and/or incoming (beneficiary’s bank) remittance charges*; are to be paid by the Applicant. As such, the applicant should instruct your ‘transferring’ bank that all associated remittance charges are to be ‘paid by the Remitter’.