Membership Overview
The DGCX Membership structure is organised into different categories depending on the requirements of the participant.
Broker Membership
Broker Members are entitled to trade on all the products listed by DGCX either on proprietary basis or on behalf of clients. Broker Members must meet minimum Net Current Tangible Asset (NCTA) requirements specified by Exchange, and comply with a comprehensive set of regulatory requirements specified in the DGCX By-Laws. Broker Members proposing to deal on behalf of clients, will be subject to statutory regulations. Broker Members will require a license from the Securities and Commodities Authority UAE (SCA). Following provisional admission to DGCX Broker Membership, the Exchange will submit the necessary papers to the SCA on the applicant’s behalf. Applicants for DGCX Broker Membership incorporated outside the UAE will be required to provide details of the regulatory arrangements to which they are subject to in their home jurisdiction. Broker Memberships are currently offered at an Admission Fee of US$ 150,000.
Before an applicant is approved as a Broker Member, the Exchange will undertake the necessary due diligence; for example:
- 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
Trade Members are entitled to trade on a proprietary basis only on all products listed on DGCX. Trade Members must meet minimum net current tangible asset (NCTA) requirements specified by DGCX. Trade Memberships are currently offered at an Admission Fee of US$ 60,000.
Before an applicant is approved as a Trade Member, the Exchange will undertake the necessary due diligence; for example:
- 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 Dubai Commodities Clearing Corporation (DCCC), which entitles them to clear DGCX transactions. In addition, 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 DCCC.
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 DCCC.
Fees & Charges
Summary of Fees and Minimum Net Current Tangible Asset (NCTA) Requirements Table 1 — DGCX Membership Fees (US$*)
| Membership Category | Admission Fee | Application Fee | Annual Fee |
|---|---|---|---|
| Broker Membership | 150,000 | 1,000 | 8,000 |
| Trade Membership | 60,000 | 1,000 | 6,250 |
| Special Clearing Membership | 150,000 | 1,000 | 8,000 |
*5% VAT will apply to all fees for applicants/members domiciled within the UAE. VAT will be zero-rated for applicants/members domiciled outside the UAE.
Table 2 — DGCX—Minimum Net Current Tangible Asset Requirements* (US$)
| Entity | Membership Category | Minimum NCTA Requirement* (US$) |
|---|---|---|
| DGCX Membership | Trade Member | 100,000.00 |
| DGCX Membership | Broker Member | 250,000.00 |
| DCCC Membership | Trade Clearing Member (TCM) | 100,000.00 |
| DCCC Membership | Direct Clearing Member (DCM) | 350,000.00 |
| DCCC Membership | General Clearing Member (GCM) | 500,000.00 |
*This requirement is expressed in terms of “Net Current Tangible Assets” (“NCTA”) — see below definition.
Definition 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.”
How to Apply
The first stage of applying for DGCX membership is completing the application form, which can be obtained from the DGCX Membership Department or via the DGCX website. All applications should be accompanied by a non-refundable Application fee*. Monies received into DGCX accounts in respect of Membership must represent the full fees as notified. Please note that all associated remittance costs, whether incurred through outward transfer charges and/or incoming (beneficiary’s bank) remittance charges*; are to be paid by the Applicant. As such, please instruct your ‘transferring’ bank that all associated remittance charges are to be ‘paid by the Remitter’.
The membership fee will be refunded in full if the application is not approved. Refund requests for membership fees will be considered at the Exchange’s discretion whilst the application is in progress. Please note that fees become non-refundable once a membership application has been approved.
*Note: the application fees are non-refundable, even if the application is unsuccessful. The Application fees for Broker and Trade membership is US$ 1,000.
Membership payments may be made to any of the DGCX bank accounts as per details below:
Dubai Gold and Commodities Exchange DMCC
No:1022244808101
IBAN:- AE700260001022244808101
SWIFT CODE:EBILAEAD
BANK: Emirates NBD
Correspondent Bank: STANDARD CHARTERED BANK
NEW YORK, NY, USA
SWIFT Code: SCBLUS33
Contact US
For further information please contact:
DGCX Membership Department
Jumeirah Lakes Towers (JLT), Gold Tower (AU), Level UP (Floor 37)
P.O. Box No. 37736,
Dubai, U.A.E.
Tel: +9714-361 1616
Fax: +9714-361 1617
Email: membership@dgcx.ae