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10:00
01 january 2014
Home > Products > Services Catalogue > Services Details

Increasing Trading Limit

Details

Brokers are not allowed to exceed the maximum trading limit (total of their B/Gs issued to DFM) in one trading session.

If a broker exceeds this limit, they will not be allowed to purchase through DFM except in the following cases:

  1. Increasing the trading maximum limit.
  2. Executing sales that will lead to decreasing the net payable dues.

For more information on this service, please contact:
DFM Customer Services
T: +971 4 305 5555
E: customerservice@dfm.ae

Fees
Free of charge.

Procedures
  • Presenting DFM with a new Bank Guarantee including the increased amount.

    OR

  • The bank that issued the Bank Guarantee sends officially to DFM informing them that they are responsible to raise the B/G limit and commits to pay the dues resulting from this increase if the broker fails to do so.

    OR

  • The broker deposits an amount either in cash or through a cheque in the deposit account concerning increasing the trading limit with the settlement bank. They are to send a copy of the statement of deposit, to which a letter from the broker requesting increasing the trading limit is enclosed.

    OR

  • The broker sends an official letter to CSD Division requesting increasing the Bank Guarantee limit, guaranteed by the amount due to them in (T+1).

    OR

  • The broker sends CSD Division an official letter requesting freezing securities concerning the brokerage firm itself.

Required Documents
  • Official letter to CSD requesting the increase of BG limit.

How to Apply?
Online through DFM eServices or in person at the DFM Clearing and Settlement Department, Trading Floor, World Trade Centre, Dubai

FAQs

The Broker can increase his Trading Limit through the following options:
  • Submit a new bank guarantee to the market including the amount of increase.
  • The bank issuing the guarantee sends an official letter to the market stating that they bear the responsibility for the increase in the bank guarantee limit, provided they undertake to pay entitlements due as a result of default by the broker.
  • Deposit an amount of money either cash or cheque in DFM's Account with: 
  1. Emirates NBD, or
  2. Standard Chartered Bank.
You then send a copy of the credit advice along with an official letter from the Broker requesting to increase the trading limit to Fax no.: +971 4 331 7597 or +971 4 305 5198 or by email to Clearing&Settlement@dfm.ae

  • Submit an official letter to the CSD Division requesting to increase the Trading Limit by using the settlement due payments which are to be collected in the next settlement date (T+1). 
  • Submit an official letter to the CSD Division requesting to freeze securities owned by the Broker or one of its owners. In this case, the Trading Limit will be increased by 50% of the securities current value in the Market. In case the Broker exceeded the original bank guarantee value, shares shall unfreeze on (T+2) only but if the broker wishes to unfreeze the shares on (T+1), he should deposit in the DFM account the amount exceeding the original bank guarantee value.