Dubai Gold & Commodities licensed brokerage firms can now do derivatives trade on DFM

DFM derivative members will now include those brokerage firms licensed by DGCX, as bourses seek greater synergy.
Image Credit: Gulf News Archive

Dubai: Brokerage firms licensed by Dubai Gold and Commodities Exchange (DGCX) can now become DFM derivatives members and provide their services to investors.

Currently, there are about 20 DGCX brokers licensed by the SCA (Securities and Commodities Authority), and the new move caters to ‘growing demand from these companies to access the DFM’. The market has received a number of inquiries, which are ‘under study in order to finalize licensing’.

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.

“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,” said Hamed Ali, CEO of DFM and Nasdaq Dubai.

This will 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.”

Recently, DFM launched trading of Oman crude oil futures contracts aligning with Dubai Mercantile Exchange and is expanding its futures’ market. “Furthermore, we are planning to grow this market segment further by introducing new products on other asset classes,” Ali added.

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