Brokerage Firms in the DGCX Allowed to Act as DFM Derivative Members, UAE SCA Says

The Securities and Commodities Authority (SCA) issued Board Chairman's Decision No. (15/Chairman) of 2022, in which it approved controls for brokerage firms operating in the Dubai Gold and Commodities Exchange (DGCX) and acting as derivative members of the Dubai Financial Market (DFM).

Fazzaco Business Awards 2022 Officially Kicks Off

The decision stated that brokerage firms operating in the DGCX may act as DFM derivative members, without prejudice to their licensing terms, conditions, or obligations.

Under the decision, licensed brokerage firms in the DGCX wishing to act as derivative members must submit their membership application to the DFM and comply with the controls, terms, and obligations set forth by the DFM and approved by the SCA.

Following the DFM's approval, these firms should maintain ongoing compliance with their licensing conditions, as outlined in the SCA's rulebook for financial activities.

The SCA will be receiving and handling complaints about the decisions it issued, as per its procedures, while the DFM will be receiving and handling complaints about its own decisions, in accordance with the procedures it has in place.

The penalties outlined in the SCA's rulebook will be applied in the event that its provisions were violated while those prescribed by the DFM will be levied if the provisions governing derivative members were breached.