The Dubai Financial Market (DFM) is set to permit Dubai Gold and Commodities Exchange (DGCX) licensed brokerage firms to become its derivatives members.
This follows DFM obtaining approval from the Securities and Commodities Authority (SCA) for such a move.
Currently, there are about 21 DGCX brokers licensed by SCA.
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.
There has been a growing demand from the brokerage firms to access the DFM.
“The market has received a number of inquiries or interests, which are under study in order to finalise licensing,” DFM said.
Hamed Ali, chief executive officer of DFM and Nasdaq Dubai welcomed SCA chairman’s decision No. (15/R.M) of 2022, pertaining to rules of DGCX brokerage firms seeking a DFM derivatives membership.
“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,” Ali said.
He said the latest move reinforced DFM’s status as one of the leading regional markets providing multiple asset classes such as equities, ETFs, equities’ futures and crude oil futures and also in meeting the growing demand from DFM’s diversified base of local and international investors.
DFM recently launched trading of Oman crude oil futures contracts in collaboration with the Dubai Mercantile Exchange and is rapidly expanding its futures’ market.
“We are planning to grow this market segment further by introducing new products on other asset classes,” Ali added.
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