Dubai resides in the United Arab Emirates (UAE), and is a financial hub of the UAE and Middle East. However, there is an alarming number of brokers operating out of Dubai who remain unregulated. It’s always important to choose a broker that is regulated by a reputable regulatory authority, so traders must be careful when choosing a broker to deal with from Dubai. There are brokers who obtain regulation here and it can be obtained from different regulatory authorities, one of which is the Dubai Gold & Commodities Exchange (DGCX).show more
The Dubai Gold & Commodities Exchange (DGCX) was established in 2005 as derivatives exchange, making it the first exchange of this kind to be operating in the Middle East and North Africa (MENA) region. The exchange is headquartered in Dubai and is owned and operated by the Dubai Multi Commodities Centre (DMCC). While the DGCX is an exchange, they are much more that as well. The DGCX can act as a licenser and regulator of trading brokerages in Dubai. Brokers who obtain membership or regulation by the DGCX must adhere to the rules and regulations laid out by the Securities and Commodities Authority (SCA), and the Dubai Gold & Commodities Exchange (DGCX). They must adhere to both regulations because the DGCX are regulated by the SCA and therefore must enforce their regulations on their member brokers.
The DGCX has various responsibilities across a wide area of financial services due to them being an exchange and a sort of regulator by having member brokers. However, their responsibilities in regard to the regulation of their member brokers include:
• To provide an efficient and lucrative trading environment for investors.
• Ensure that broker members adhere to the guidelines of the SCA and themselves.
• Provide and maintain liquidity in the DGCX marketplace.
• Provide safe, secure, and transparent financial services for investors.
Member brokers who are regulated by the Dubai Gold & Commodities Exchange provide their clients with a safe, secure, and transparent trading environment. The DGCX regulates their member brokers to ensure they adhere to the strict guidelines of the SCA and themselves so investors will be protected. DGCX regulation protects investors by providing top of the line investment services and which have been developed by them and implemented by their member brokers. Therefore, traders can rest assured they will be protected.
DGCX regulated brokers must adhere to all the guidelines laid out by the SCA in addition to the guidelines laid out by the DGCX. However, the DGCX enforces very few of their own guidelines as the SCA has all the bases covered. Rather than enforcing their own guidelines, DGCX ensures member brokers are following the guidelines of the SCA.These guidelines include periodic reporting, annual audits, transparent services, and so on.