DFM enables DGCX brokerage companies to provide derivatives trading

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

There are approximately 21 DGCX brokers licensed by the SCA and this step will cater to the growing demand from these companies to access the DFM. The market has received a number of inquiries or interests, which are under study in order to finalise licensing.

Hamed Ali, CEO of DFM and Nasdaq Dubai welcomed the SCA’s Chairman Decision No. (15/R.M) of 2022, pertaining to rules of DGCX brokerage firms seeking a DFM derivatives membership, as an example of SCA’s continuous cooperation, which offers new trading opportunities to their clients.

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 licence.

"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," Hamed Ali said.

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