Providing Brokerage Services in Commodities in the UAE Futures and Derivatives Trading

Hassan Elhais
 


Visitors: 71

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) needs to carry out the necessary procedures to obtain a membership from DGCX (Dubai Gold and Commodities Exchange).

Broker Members are entitled to trade on all the products listed by the DGCX either on a proprietary basis or on behalf of clients. Broker members have to meet minimum Net Current Tangible Asset (NCTA) requirements specified by Exchange and comply with a 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 they are subject to in their home jurisdiction.

Before an applicant is approved as a Broker Member, the Exchange needs to carry out certain checks such as;

1. The applicant’s financial resources

2. The applicant’s expertise and experience as a broker in commodities, derivatives markets and/ or in securities, or other similar markets

3. The applicant’s likely contribution to the liquidity and development of DGCX markets

4. Fees and charges

5. Summary of Fees and Minimum Net Current Tangible Asset (NCTA) Requirements

To apply for DGCX membership you need to firstly complete the application form. 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 if the application is not approved. Refund requests for membership fees will be considered at the Exchange’s discretion while the application is in progress. However, once a membership application has been approved the fees become non-refundable. All associated remittance costs are to be paid by the Applicant.

Author: Mr. Hassan Elhais, along with his team of legal consultants and prominent local lawyers across the UAE, has made a name for himself as a renowned specialist in the fields of civil law, construction law, banking law, criminal law, family law, inheritance law and arbitration.

(451)

Article Source:


 
Rate this Article: 
 
Futures Day Trading - Patterns in The S&P 500 and E-mini Futures Contracts- .
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

Trading Plans for Commodities Futures

by: Richard Stooker (August 21, 2010) 
(Investing/Futures and Commodities)

Derivatives trading India is basically buying or selling the derivatives

by: Suresh Dinakaran (March 15, 2011) 
(Finance/Personal Finance)

What are Derivatives and Futures Options?

by: Monish Kumar (February 22, 2013) 
(Investing/Stocks)

Derivatives Trading India - What are Derivatives?

by: Suresh Dinakaran (July 21, 2010) 
(Finance/Personal Finance)

Commodities Trading 101 - Do You Know The Basics Of Commodities Trading?

by: Mike Singh (February 20, 2007) 
(Finance)

How To Start Commodities Brokerage Business In New Orleans: A Guide

by: Alexander Gordon (December 29, 2006) 
(Business)

Know The Difference Between Commodities and a Futures Contract

by: Ridds Tanwer (September 16, 2013) 
(Investing/Futures and Commodities)

Understanding Technical Analysis Of Stocks, Futures And Commodities

by: Rockford Tapscott (January 07, 2007) 
(Finance)

Futures Day Trading - Patterns in The S&P 500 and E-mini Futures Contracts, .

by: Thomas Cathey (March 07, 2007) 
(Finance)

Futures Day Trading - Patterns in The S&P 500 and E-mini Futures Contracts- .

by: Thomas Cathey (March 07, 2007) 
(Finance)