Membership has been structured to provide participation by brokers who wish to operate on DGCX primarily on behalf of clients or by participants who wish to operate solely on DGCX.
Categories of Membership
DGCX offers the following Membership categories
Broker Membership
Broker Members are entitled to trade on all the products listed by DGCX either as principal 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 each.
In determining whether an applicant qualifies for this purpose, the Exchange will have regard to:
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The applicant’s financial resources
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The applicant’s expertise and experience as a broker in commodities, derivatives markets and/or in securities, or other similar markets
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Assessment of the applicant’s likely contribution to the liquidity and development of DGCX markets.
Trade Membership
Trade Members are entitled to trade as principal 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 each. In determining whether an applicant qualifies for this purpose, the Exchange will have regard to:
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The applicant’s financial resources
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The applicant’s expertise and experience in commodities, derivatives markets and/or in securities, or other similar markets
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DGCX assessment of the applicant’s likely contribution to the liquidity and development of DGCX markets.
Annual Membership Lease Scheme
As an alternative to admission fees, an applicant for Membership can opt to pay an annual Membership Lease Fee to become a Trade or Broker Member. Such annual Membership Fee is rebated in part or full; subject to the Member achieving certain Minimum Annual Volume Targets (MAVT).
Annual Fee for Trade Member - $20,000
Annual Fee for Broker Member -$50,000
| Less Than 20,000 lots | Less than 50,000 lots | No Rebate |
| 20,000 to 40,000 lots | 50,000 - 100,000 lots | 50% refund |
| More than 40,000 lots | More than 100,000 lots | 100% refund |
Entities availing Trading Rights by payment of Annual Membership Lease Fee will be deemed ‘’Member’’ of the Exchange and will be bound by the Exchange By-Laws, with the exception of By-Law C.5, ‘’Transfer of Membership’’, as there is no entitlement to transfer membership applicable to Members that pay an annual Membership Lease Fee. Members paying Annual Membership Lease Fee to avail Broker Memberships are required to inform their Clients, in clear terms, that such membership of the Exchange is renewable on an annual basis.
Introducing Broker Membership
An Introducing Broker Membership permits the applicant (IB) to introduce clients to Broker Members to transact business on DGCX. The IB is not permitted to handle Client’s funds / securities (in any form whatsoever) and will not be held responsible for the activities of Clients introduced by them. A Broker member who is entitled to do clientele business on DGCX is permitted to nominate IB’s to DGCX.
Introducing Broker Memberships are currently offered at an Admission Fee of US$ 2000 each. An IB Membership is non-transferable.
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 undertake the clearing of DGCX transactions, but who do not wish to undertake trading activities as either a principal or a broker may apply for Special Membership of DCCC.
Applicants for Clearing Membership are required to meet minimum net asset requirements set by DCCC, and to open a ‘Settlement Account’ with any one of the Approved Clearing Banks of the DCCC.
Summary of Fees and Minimum Net Current Tangible Asset (NCTA) Requirements
Table 1 — DGCX Membership Fees (US$)
| Broker Membership | 150,000* | 1000 | 1,000 |
| Trade Membership | 60,000 | 1000 | 500 |
| Introducing Broker Membership 1 | 2,000 | 250 | 500 2 |
¹ This category of Membership is non transferable {please refer to DGCX By-Law C.5.1(a)(ii)}.
² Annually from 1st January 2009.
* From 1st May 2006 onwards.
** Payable on 1st January, each year -- first payable on 1st January 2007
Table 2 — DGCX—Minimum Net Current Tangible Asset Requirements* (US$)
| Broker Member | 250,000 |
| Broker Clearing Member | 350,000 |
| Trade Member | 100,000 |
| Trade Clearing Member | 100,000 |
| Special Clearing Member | 350,000 |
| Introducing Broker Member | N/A |
*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 as the case may be (such value being the lower of cost or Market) less the sum of any liabilities (secured and unsecured) attaching 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 like 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.”
DGCX/DCCC – Transaction charges (US$)
Transaction charges and volume discounts are effective from July 1, 2008 on all existing DGCX contracts, with the exception of Steel Rebar Futures & Crude Oil Futures (DWTI & DBRC). Prescribed transaction charges for Steel Rebar Futures & Crude Oil Futures (DWTI & DBRC) will be announced in due course.
Table 1 – Transaction Charges* Details
| Trade Fee | 0.55 | 0.25 |
| Clearing Fee | 0.10 |
| EFS/EFP/Block Trade Fee | Same as Trade & Clearing Fee |
* Transaction charges in US$ per contract per side
Transaction charges payable by Members shall be calculated at the end of each calendar month at the above rates for contracts traded in the given month. Volume discounts, where applicable, shall be based on volumes achieved (Total number of contracts traded) during the month per Table 2 below;
Table 2 – Volume Discount Matrix
| 0 - 5,000 | 0% |
| 5,001 - 10,000 | 20% |
| 10,001 - 25,000 | 35% |
| 25,001 & above | 50% |
*Volume discounts not applicable on Clearing Fees and excludes EFS/EFP/Block transactions.
Transaction charges shall be collected from respective Guarantor Clearing Member for all the Guaranteed Members associated with them. Members’ Access to the DGCX Trading and Clearing Platform
DGCX is an electronic exchange that can be accessed by Broker Members and Trade Members from anywhere in the world. Access can be by way of leased lines and Internet. In order to trade on the DGCX platform, Members may use the standard front-end provided by the Exchange. Alternatively, DGCX also provides a connectivity option based on FIX messaging protocol. DGCX FIX Connect is a product conforming to FIX 4.2 specifications.
Procedure for Applying for DCGX Membership
Applicants for DGCX Membership must submit a completed application form. Application forms can be downloaded from the DGCX website (www.dgcx.ae) or obtained from the DGCX Membership Department. A non-refundable Application fee of USD 1000 must accompany the application. The Application must also be accompanied with the applicable membership fee; which will be returned in full if the application is not approved. Monies received into DGCX accounts in respect of Membership must represent the full fees as notified. 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 shall be refunded in full if the application is not approved. Requests for refund of membership fees deposited may be considered for refund at the Exchange’s discretion whilst the application is in progress. Please note that fees paid become non-refundable once an application is approved for membership.
Payments may be made to any of the DGCX bank accounts as per details given below:
| Dubai Gold and Commodities Exchange DMCC | Dubai Gold and Commodities Exchange DMCC |
| A/C No: - 0 2 0 7 7 5 3 4 2 1 0 0 | A/C No: - 0 1 4 8 1 1 3 6 5 5 |
| SWIFT CODE: - BBMEAEAD | SWIFT CODE: - NBDUAEAD |
| BANK: - HSBC | BANK: - NATIONAL BANK OF DUBAI |
For further information contact;
DGCX Membership Department
Emaar Business Park, Bldg No.2, Level 1,
Sheikh Zayed Road, P.O. Box No. 37736
Dubai, U.A.E.
Tel: +9714-361 1616
Fax: +9714-361 1617
Email: membership@dgcx.ae
DGCX is an initiative of the Dubai Multi Commodities Centre (DMCC), Financial Technologies (India) Limited and the Multi Commodity Exchange of India Limited (MCX). The Management team of DGCX comprises senior personnel from the commodities, securities and financial services industries bringing a wealth of experience and expertise to ensure the success of DGCX. 
The state-of-the-art, new generation trading platform of DGCX is extremely user-friendly and adaptable, enabling the trading of futures and options products for a wide range of commodities from basic commodities such as gold, silver, fuel oil, pulses and steel to more exotic products such as freight rates. The Exchange Trading System, which maintains the Central Order Book, is located in Dubai. Orders placed by the members through their Trader Work Station (TWS) from across the globe are routed to the central order book where the orders are matched based on a price time priority algorithm. Additionally, members can also use their existing front-end application through Exchange FIX Gateway which supports FIX 4.2 protocol standard.
