Regulatory Structure and Overview
DGCX is a Self-Regulatory Organization (SRO), having its own rules/regulations. DGCX is an Affiliate Member of the International Organisation of Securities Commissions (IOSCO), a Recognized Body under the Dubai Financial Services Authority (DFSA), UAE, and a Recognized Market Operator (RMO) under Monetary Authority of Singapore (MAS).
DGCX is regulated by Securities and Commodities Authority (SCA), the federal regulator in the UAE. SCA was established in 2000 in accordance with Federal Law no.4 and is a public authority that has been given the supervisory and executive powers necessary to perform its functions. SCA is the regulatory authority for the Securities Market and Commodities markets in the UAE. SCA’s fundamental objective is to provide the opportunity to invest in commodities in a manner that serves the interest of the national economy by establishing the basis for sound and just dealings between various investors. SCA is an Ordinary Member of IOSCO and has signed an Multilateral Memorandum Of Understanding with IOSCO for enhancing the cooperation and sharing information.
DGCX has obtained recognition from the DFSA as a Recognised Body in order to allow the DIFC domiciled firms, licensed by DFSA, to become Members on the Exchange. DGCX has been granted Recognized Body status under Financial Services Regulatory Authority/FSRA. This recognition allows DGCX to conduct its activity within ADGM as a Non-ADGM Recognized Investment Exchange, pursuant to section 127(a) of the Financial Services and Markets Regulations, accordingly, the firms, financial institutions domiciled in that jurisdiction are allowed to become Broker Members on the Exchange. DGCX has been granted the status of a Recognized Market Operator (RMO), under the Securities and Futures Act (‘SFA’ ‘Cap’. 289), by the Monetary Authority of Singapore (MAS). This allows DGCX to grant membership of the Exchange to Brokers domiciled in Singapore. The recognition of DGCX as a RMO is also restricted to its operation of a futures market. Broker Members, domiciled in Singapore, shall only allow professional investors and accredited investors as defined under SFA (cap 289) to trade on DGCX market.
DGCX has a fully operational Compliance Department which, in liaison with SCA, ensures that Broker Members maintain strict adherence to SCA approved DGCX By-Laws and where applicable SCA regulations.