DMCC: a stock exchange regulator from the UAE

The Asian economy has been growing at an astonishing rate in recent years. Oil-producing countries, which are gaining influence in the global economy due to increasing fuel consumption as well as rising oil prices, are attracting particular attention. Among the important players is the United Arab Emirates which claims to be the financial leader of Asia. In this article, fortrader.org magazine will look at DMCC - the UAE commodities exchange and its regulation.

Multi Commodity Exchange - DMCC

• Full name: Dubai Multi Commodity Exchange
• English title: Dubai Multi Commodities Center
• Abbreviated title: DMCC
• Subordinate countries: operating in the UAE, the regulations apply to all active companies
• Funding: at the expense of revenues from exchange members
• Degree of trust of tradersmedium
• Official website: www.dmcc.ae

The Emirates Free Trade Zone was founded in 2002 and is the embodiment of a strategic initiative of the government to create a single market in the UAE for the sale of commodities. It functions as an autonomous market infrastructure, providing the necessary services to all members of the zone. The most preferred for DMCC are firms dealing in tea, cotton, precious stones, metals, financial assets, and real estate.

You can count on such services in the free zone:

• getting help with registration processes;
• obtaining licenses for trading activities;
• the ability to exchange a large number of goods and services;
• the possibility of obtaining the necessary funding;
• Real estate services (lease, transfer of title).

Types of licenses from DMCC and the trust of traders

In order to carry out activities within the zone, you must have the appropriate licenses. There are two varieties:

• Commodities license - work with product groups (sale of raw materials or goods);
• Non-commodities license - work with non-commodity groups (services).

Activities DMCC is to provide free trading opportunities within the UAE and to control trading operations. Traders' confidence in the information coming from DMCCThe market has just reached the level of accelerated development and has a highly specialized control. Nevertheless, if the service contract is concluded with a broker from the Arab Emirates, you should pay attention to this regulator, because the provision of financial services in Islamic countries is very different from traditional ones, and, consequently, there may be controversial points, which will be within the competence of this regulator.