• DFMPress release
  • OUTFLGeneral Information regarding the listing of the company
10:00
01 january 2014
Home > Members > New Member

New Member

The following states the requirements for membership on the Dubai Financial Market (DFM) and act as an intermediary between the market and investors. In order for an institution to participate on the Dubai Financial Market, it is necessary to become a member first.

There are three types of membership:

  1. Trading Member (Broker)
  2. Depository Member
  3. Custodian Clearing Member

 

Trading Clearing Member (Broker)

 

To become a Trading Clearing Member, an applicant must have the following:

  1.  An approved Trading Clearing Member of the DFM and licensed by the local regulator, the Securities and Commodities Authority of the UAE (SCA).
  2. The Trading Clearing member must lodge a Bank Guarantee with a minimum value of AED 20 million to DFM Clearing.
  3.  A letter confirming their settlement account details (account name, number and type (AED or USD) from an approved DFM settlement bank.
  4.  Copy of Trading Clearing Member undertaking letter to settlement bank.
  5.  An undertaking letter in case they do not have a dollar account.
  6.  List of authorized signatory names and specimen signatures.
  7. An undertaking letter (general or specific) for the Trading Clearing Members trading for investors using a Custodian Clearing Member for settlement.
Please click here for the List of Trading Clearing Members  

Depository Member

Any Trading Member is automatically a Depository Member of the Dubai Financial Market (DFM) Depository. For a Custodian to be a Depository Member, the entity must be:

1. A shareholding company established in the state and operating in the field of securities: 
  •  A local commercial bank, foreign investment bank or a branch of a foreign bank provided that the partner bank is licensed to practice this activity and subject to approval by the UAE Central Bank in such cases.
2. The entity will then be required to be licensed by the SCA before being eligible to apply to become a Depository Member.

3. A custodian applicant will be required to: 
  •  Complete the Custodian Agreement with DFM Depository Department
  •  Provide the market with an authorized signatories list and identify the persons assigned to communicate with the DFM for each type of transaction.
  •  Provide the market with a certified copy of valid License issued by the SCA along with the annual custody fee payable to the DFM at the beginning of each year.
  •  Provide the market with an official letter identifying the member code in DFM’s system.
  •  State the preferred payment method in the case of a dividend distribution; providing the IBAN number for AED and USD accounts (if wire transfer is selected as method of payment).
  •  Sign the related undertaking letter provided by the DFM.
  •  Request the electronic connection service. (optional)
  • Please contact custodians@dfm.ae for agreements and letter formats.


Custodian Clearing Member

To become a Custodian Clearing Member, an entity must be:

1. Licensed as a local bank.

2. The local bank will then be required to be licensed by the SCA before being eligible to become a Custodian Clearing Member.

3. To apply to be a Custodian Clearing Member, the custodian applicant will be required to: 
  •  Lodge collateral comprising a bank guarantee for a minimum of AED 20 million to DFM Clearing.
  •  Complete the Custodian Agreement with DFM Depository.
  •  Provide the market with an authorized signatories list and identify the persons assigned to communicate with the DFM for each type of transaction.
  •  Copy of Custodian Undertaking letter to settlement bank.
  •  Provide an undertaking letter in case they do not have a dollar account.
  •  Provide a letter confirming settlement account details (account name, number and type (AED or USD) from an approved DFM settlement bank.
  • Provide a letter requesting daily trade reports.
  • Provide the market with a certified copy of valid License Renewal Letter issued by the SCA along with the annual custody fee payable to the DFM at the beginning of each year.
4. Please contact clearing&settlement@dfm.ae for agreement and letter formats.

5. The list of Custodian Clearing Members is as follows: