Broker Membership
Entitlement
They can trade on all the products listed by DGCX either on a proprietary basis or on behalf of clients.
Must meet minimum Net Current Tangible Asset (NCTA) requirements specified by the Exchange, and comply with a comprehensive set of regulatory requirements specified in the DGCX By-Laws.
Will deal on behalf of clients, and will be subject to statutory regulations.
Pre-requisites
Will require a license from the Securities and Commodities Authority UAE (SCA).
The Exchange will submit the necessary papers to the SCA on behalf of the applicant following the provisional admission to DGCX Broker Membership.
Applicants outside the UAE will be required to provide details of the regulatory arrangements to which they are subject to in their home jurisdiction. The Admission Fee for Broker Membership is US$ 75,000.
Due diligence by the Exchange
The applicant’s financial resources.
The applicant’s expertise and experience as a broker in commodities, derivatives markets and/or in securities, or other similar markets.
The applicant’s likely contribution to the liquidity and development of DGCX markets.
Trade Membership
Entitlement
Trade on a proprietary basis only on all products listed on DGCX.
Pre-requisites
Must meet minimum net current tangible asset (NCTA) requirements specified by DGCX.
Pay an admission fee of US$ 30,000.
Due diligence by the Exchange
The applicant’s financial resources.
The applicant’s expertise and experience in commodities, derivatives markets and/or in securities, or other similar markets.
The applicant’s likely contribution to the liquidity and development of DGCX markets.
Special Clearing Membership
Broker Members and Trade Members are eligible to apply for Regular Membership of the DGCX Clearing House, which entitles them to clear DGCX transactions.
Financial institutions who propose to clear DGCX transactions, but who do not wish to trade either as a principal or for clients may apply for Special Membership of DGCX Clearing House.
Applicants for Clearing Membership are required to meet minimum Net Current Tangible Assets (NCTA) requirements and to open a ‘Settlement Account’ with any one of the Approved Clearing Banks of the Clearing House.
Fees and Charges
Summary of Fees and Minimum Net Current Tangible Asset (NCTA) Requirements Table 1 — DGCX Membership Fees (US$*)
*5% VAT will apply to all fees for applicants/members domiciled within the UAE. VAT will be zero-rated for applicants/members domiciled outside the UAE.
Table 2-DGCX-Minimum Net Current Tangible Asset Requirements" (US$)
*5% VAT will apply to all fees for applicants/members domiciled within the UAE. VAT will be zero-rated for applicants/members domiciled outside the UAE.
Table 2-DGCX-Minimum Net Current Tangible Asset Requirements" (US$)
*This requirement is expressed in terms of "Net Current Tangible Assets" ("NCTA")
"The sum of the values of the current assets owned by the Member or prospective Member (such value being the lower of cost or Market) less the sum of any liabilities (secured and unsecured) applicable to those assets or to the Member or prospective Member generally (and in the case of a partnership then attaching to the partners). The values of assets for the purpose of this definition shall not include the value attributed to any future tax benefits, goodwill, patent, trademark, Membership rights granted by the Exchange, preliminary expense or other items of a similar nature which in the opinion of the auditors of the Exchange are regarded in current internationally accepted accounting practice as intangible or the value attributed to any debt owed to the Member which is disputed or may otherwise be regarded as doubtful or the value of any asset which is not capable of being realized within twelve (12) months on a going concern basis. Liabilities shall include all non-current and current liabilities, which in the opinion of the auditors of the Exchange are in accord with current internationally, accepted accounting practice. Liabilities may, if the Exchange so approves, having regard to all the circumstances, exclude approved subordinated debt."