Dubai Financial Market (DFM) said Monday that it has obtained the approval of the Securities and Commodities Authority (SCA) to allow the 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.
Currently, there are approximately 21 DGCX brokers licensed by SCA and this significant step caters to the growing demand from these companies to access the DFM, according to a DFM statement.
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.
The market has received a number of inquiries or interests, which are under study in order to finalize licensing, the statement added.
Hamed Ali, CEO of DFM and Nasdaq Dubai, said, “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.”
He said the move will reinforce DFM’s status as one of the leading regional markets providing multiple asset classes such as equities, ETFs, equities’ futures and crude oil futures to meet the growing demand from DFM’s diversified base of local and international investors.
“For instance, the DFM recently launched trading of Oman crude oil futures contracts in collaboration with the Dubai Mercantile Exchange and is rapidly expanding its futures’ market. Furthermore, we are planning to grow this market segment further by introducing new products on other asset classes,” Ali added.