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Dubai Financial Market (DFM) will allow the Dubai Gold and Commodities Exchange (DGCX) licensed brokerage firms to trade derivatives following approval from the country's market regulator, it said in a statement on Thursday.
The Securities and Commodities Authority (SCA) has said 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 exchange, one of the two operating in the UAE, said the move follows growing demand from these companies to access the DFM. The exchange has in recent years initiated a series of moves designed to inject momentum and attract more activity, including primary listings and derivative trading.
It recently launched trading of Oman crude oil futures contracts in collaboration with the Dubai Mercantile Exchange.
"Furthermore, we are planning to grow this market segment further by introducing new products on other asset classes," said Hamed Ali, CEO of the exchnage.
(Writing by Brinda Darasha; editing by Seban Scaria)
