Arena provides eligible growth companies and family businesses with access to growth capital provided by a wide group of investors.

Apple Pay, is a mobile contactless payment solution that enables customers to make in-store, in apps, and on the web purchases with select Apple devices. You can use Apple Pay everywhere contactless payments are accepted.

In stores, you can use Apple Pay on your iPhone or Apple Watch. Within apps, you can use Apple Pay on your iPhone, iPad, and Apple Watch. Within websites in Safari, you can use Apple Pay on your iPhone, iPad, and Mac.

1. To pay with Face ID, double-click the side button, glance at your screen, then hold your iPhone near the card reader, with your finger on Touch ID.
2. To pay with your Apple Watch, double-click the side button and hold your Apple Watch up to the card reader.

1. Open the Apple Wallet app on your iPhone, touch and hold down on your iVestor card to drag it to the front of your cards.
2. Open settings on your iPhone and tap ‘Wallet & Apple Pay”, Go to “Transaction Defaults” and tap on ‘Default card, the change will be notified with a tick sign.

Apple Pay, is a mobile contactless payment solution that enables customers to make in-store, in apps, and on the web purchases with select Apple devices. You can use Apple Pay everywhere contactless payments are accepted.

In stores, you can use Apple Pay on your iPhone or Apple Watch. Within apps, you can use Apple Pay on your iPhone, iPad, and Apple Watch. Within websites in Safari, you can use Apple Pay on your iPhone, iPad, and Mac.

1. To pay with Face ID, double-click the side button, glance at your screen, then hold your iPhone near the card reader, with your finger on Touch ID.
2. To pay with your Apple Watch, double-click the side button and hold your Apple Watch up to the card reader.

1. Open the Apple Wallet app on your iPhone, touch and hold down on your iVestor card to drag it to the front of your cards.
2. Open settings on your iPhone and tap ‘Wallet & Apple Pay”, Go to “Transaction Defaults” and tap on ‘Default card, the change will be notified with a tick sign.

• Market Orders: Executed at current market price.
• Limit Orders: Executed at a specific price you set.

• Likely due to missing or expired documents. Contact support@xcube.ae.
• If your xCube account has been upgraded to a margin account, trading through iVestor is currently restricted.

• Open orders
• Order history
• Transaction statements for your Trading Fund account

• As a first step, if you are over 18 years of age you can open a trading equity and futures account on iVestor app with our partnered brokers.
• Next, make sure your trading fund account has a cash balance for the margin requirement for trading DFM futures contracts. For example, the DFMGI future this is 5% for each contract.
• Place an order on the app to either buy or sell the equity Futures contract. The order will be sent to the DFM derivatives market via a partnered broker and executed if a matching price is available. The trade will be registered for clearing and settlement with Dubai Clear.
• Any profit or loss made due to a change in the market price of the Futures contract is settled after the closing on a daily basis as Realized PL.
• Once a position is closed, any Initial Margins related to this position, after any profit or loss, will be released and added/ deducted to/ from your trading fund account.
• For investors holding the contract to expiry date, the contract will be automatically closed and settled by Dubai Clear with the final settlement price.

• Leverage – Magnification of the effect of the capital can lead to significant losses, considerably more than the movement of the underlying asset.
• Close out – Any open contracts are automatically closed on the expiration day by the clearing house at the Final Settlement Price.
• Margin calls – Your broker may make margin calls during the term of the future, which require immediate cash settlement. Any failure to meet this margin call may result in liquidation of your positions with or without your consent.
• Dividend uncertainty– Holders of Futures contracts do not receive any ordinary dividends paid by the company on underlying shares. Investors must also consider that expected dividends declared and factored into Futures prices are not certain and this may affect the profit or loss made by investors on their Futures trading.

• Long (Buy): Entering a position to benefit from an increase in the price of the underlying asset.
• Short (Sell): Entering a position to benefit from a decrease in the price of the underlying asset, often without owning it.
• Note: For an existing long or short position the short or long action will partially close the position if you execute it with the same broker. However, if you are long with one broker, you can open a short position for the same symbol with another broker.

Equity Futures contracts have a 3-month trading cycle: the near month (one), the next month (two), and the far month (three).

New contracts are introduced on the second Thursday of the near month. Each contract expires on the third Thursday of its expiry month, and a new three months contract would be introduced a week earlier of its expiry date. By this way, before the expiry day of each contract, there will be 4 contracts available for trading in the market for one week.

For example, if a new future contract listed on October 08, 2020, there would be three contracts: The first contract expires on November 19th, 2020, the second contract expires on December 17,2020, while the third contract expires on January 21 2021. On 12 November 2020, a new contract would be introduced to be expired on the 3rd Thursday of February 2021. Accordingly, there will be four contracts available for trading during the week preceding the expiry date of near month contract.

All Equity Futures Contracts are cash settled on a daily basis for the profit or loss calculated based on the Daily Settlement Price which is specified in the contract specification of the product. The daily settlement price will become the adjusted cost price of the contracts.

On the expiry day of the contract all open positions are expired/closed and positions are settled for the profit and loss using the Final Settlement price on the expiry day, which will be the closing price of the underlying stock or index.

In single stock futures trading, buyers and sellers agree to the terms of the contract, including the price, quantity, and expiration date. Currently these contracts are settled through cash settlement, where the final price of the contract is exchanged for cash.

The settlement process involves the exchange of cash instead of physical delivery of the underlying shares. When the contract reaches its expiration date, the final price of the futures contract is determined based on the prevailing market price of the underlying stock. In cash settlement, there is no physical delivery of the underlying shares.

Instead, the settlement is achieved through the payment of cash differentials based on the price movement of the underlying asset. The futures price is determined by the current price of the underlying stock, adjusted for factors such as dividends, interest rates, and market expectations.

Underlying Index
DFM General Index (DFMGI)

Currency of Trading
AED (UAE Dirham)

Contract Type
Futures

Contract Size
10

Contract Value
DFMGI Futures price x Contract size Example: (3500 x 10 = 35,000)

Contract Series
3 consecutive months contracts. Example: June 2023, July 2023, and August 2023.

Tick Size
0.50

Tick Value
Contract Size x Tick size - AED 5

Safeguards (daily price limits)
5% up and down from previous closing price. Market would have the discretion to increase or decrease the price limits pending market circumstances, if there is significant change in the underlying DFMGI index.

Settlement Type
Cash Settlement

Daily Settlement Price
Theoretical Futures Price of Underlying Index, Calculated In accordance with the Clearing, Settlement and Risk Management Procedures for Derivatives

Final Cash Settlement Price
FCSP is based on the closing price of the underlying Index on Last Trading Day

Expiry Day (Last Trading Day)
3rd Thursday of the expiry month. In the event of the 3rd Thursday not being a Business Day, the Last Trading Day shall normally be the Business Day prior the 3rd Thursday.

Trading Days
Exchange Business Days

Settlement Day
T+1 (Business Day following the Trading Day)

Settlement Currency
AED (UAE Dirham)

Listing of New Contract Series
2nd Thursday of the expiry month i.e., Thursday prior to Expiry Day

Trading Hours
Monday- Friday, 10:00 - 15:00 (UAE Time). Please refer to Trading Manual for further details on trading sessions

Max Order Size (In Value)
AED 20 million

Direct Deals (No of Lots)
300

Position Limit
Higher of 10,000 lots or 30% of the total open interest in the market. For further details refer Dubai Clear circular

Initial Margin Rate
Minimum 5% and adjusted from time to time as per Dubai Clear Risk Management procedures

Matching Engine Board
DFMGI Futures will be listed on DFM Futures AED board (602)

Contract (lot) size represents the minimum number of units of the underlying Equities or index you buy or sell when 1 contract of Futures is bought or sold.

For example, if the product specification of Single Stock Future says that the Contract size is 100 then it means when 1 contract is bought or sold, it is equivalent of buying or selling 100 shares of that underlying.

By taking Long or Short position in a future contract, the investor needs to deposit a minimum amount of acceptable collateral as an Initial Margin with the member. Initial Margin rates for DFMGI Futures is 5% as prescribed by Dubai Clear. However, members have the right to ask for a higher Initial Margin depending on the risk profile of the client. When the client closes the position (sell to close Long position and buy to close short position), the balance of the Initial Margin is released.

Example:
On September 1, 2026, an investor buys a 1 contract of DFMGI Futures at a price of AED 3,500 September 2026 expiry.
Contract Size is 10 and Initial Margin is 5% per contract.
Expiry day of the contract will be 17 September 2026
The contract value is AED 35,000 (1 * 3,500 * 10)
The investor pays only AED 1,750 as Initial Margin (35,000*5%).

• Investors must understand that investment in Futures has an element of risk and is generally not an appropriate avenue for someone of limited resources (limited investment), limited trading experience, and low risk tolerance.
• An investor should therefore carefully consider whether such trading is suitable for him or her in the light of his or her financial position.
• An investor must accept that there can be no guarantee of profits or no exception from losses while executing orders for purchase and / or sale of Future contracts, Investors who trade in Futures at the Exchange are advised to carefully read the Risk Disclosure Document and the details contained therein.
• The investor must read this document, understand the implications, and sign it. The document clearly states the risks associated with trading in Equity Futures and advises investors to exercise the utmost caution before entering into the market.

• Download the iVestor app (available on iOS and Android)
• Launch the app.
• Once you are directed to the welcome screen, create your account in a few easy steps. You will need your Emirates ID on hand if you are a UAE resident, or a passport if you are not a resident.
• You are in! Explore the app while you wait for your card to be delivered in 4-5 business days within UAE and 15 business days internationally.

• Download the iVestor app (available on iOS and Android)
• Launch the app
• Login with your DFM account credentials
• Forgot your password? Tap “forgot password” and follow the steps to login.

• Login to your iVestor app, and click the card tab
• Provide the last 4 digits of card number and expiry date

• Land line: 043055555
• Select option 3
• Select option 1
• Enter your 16 digit card number

• Active UAE mobile number
• Email ID
• Valid Emirates ID
• Current Address in the UAE

• Active country of residence mobile number
• Email ID
• Valid passport
• Address

Yes, the iVestor card is also a cash card. You can withdraw from the credit balance on your iVestor card from any VISA or PLUS marked ATMs* worldwide. The respective forex rates apply.

• Navigate to account settings
• Tap on account
• Tap on password
• Create your password

Currently this is not available.

• Admission of carbon credits at DFM;
• Trading of carbon credits on the Market;
• Registry of carbon credits in the CSD;
• Clearing, Settlement; and
• Retirement of carbon credits through CSD.

IPO upgrade (leverage) options increase the chances of higher allocation. IPO upgrade is offered in liaison with our partner Al Maryah Community Bank (Mbank). We recommend you review the below to understand the process and the fees.

The amount of upgrade or the additional subscription amount depends on your initial contribution and the upgrade multiples available.

For example if you want to subscribe AED 5,000 and you decide to use the upgrade facility to provide 2x the capital you added; therefore your subscription will be boosted to AED 15,000. AED 5,000 is your initial IPO subscription and the upgrade is for AED 10,000 (2x your contribution).

The upgrade options are multiples ranging from 1 to 5 times depending on the IPO.

There will be a minimum subscription amount to apply for the IPO upgrade (leverage).

The charges and fees levied is a minimum of AED 150.00 plus AED 0.15 per incremental shares allocated.

Example of fee calculation:
Original allocation: 1,000 shares
Additional shares received due to upgrade: 500 shares
Upgrade fee: AED 150.00 + (AED 0.15 * 500 shares= AED 75.00)
Total fee: AED 225.00

The upgrade request will be received and shall remain under process till its approved, adjusted, or not applied depending on the allocation criteria by our partner Bank. You will receive the updates via your email.

The request will remain under process until IPO closure date.

The status of your upgrade will have no impact on your initial IPO subscription.

There are no additional interest or profit charges. The charges and fees levied is minimum of AED 150.00 plus AED 0.15 + 5% VAT per incremental share allocated due to the upgrade.

There are no margin calls applicable.

Our IPO upgrade financing partner Al Maryah Community Bank (Mbank) requires investors to accept their terms and conditions for the account and wallet opening and fill additional information requested during the IPO upgrade journey.

Yes, Mbank will open a wallet account for you during the IPO upgrade process as per UAE Central Bank rules.

No, this wallet account will be used for the upgrade facility option only. If you wish to open a current account with Mbank, you will have to open it with them directly.

Only send the due amount as mentioned in the email, without adding the IPO upgrade amount.

• If you subscribed in person at a branch, an SMS and email confirmation will be sent by the bank.
• If you subscribed online through the DFM IPO Subscription Platform, we will send you an email confirmation.

It will be refunded back to your iVestor Card.

An identification number issued for the Investor by Dubai CSD at DFM. This is required for an Investor to hold shares that are traded on DFM, including subscribing to an IPO of a company that will list on DFM.

You can apply through the following channels:

• DFM App(NIN is issued instantly)
• eServices at www.dfm.ae (NIN is issued within 1 working day)
• Dubai CSD Desk at DFM Trading Floor (NIN is issued instantly)
• Licensed Brokerage Firms at DFM (NIN is issued within 1 working day)

There is no fee for obtaining a NIN.

• Call the Customer Services Affairs on +971 4 305 5555 from the mobile number you have registered with DFM (weekdays 8:00am – 4:00pm) to receive the DFM Investor Number (NIN) immediately over the phone.
• Alternatively, investors can visit the Dubai CSD Desk at the DFM Trading Floor, Rashid Tower, World Trade Centre, Dubai (From 8am to 04:00pm), Monday to Friday.
• Contact your broker

Yes, you can. All DFM investor services can be accessed through a licensed Trading Member of DFM.

Yes, you can through an official Power of Attorney (POA). If the POA is issued outside of the UAE, it must be certified by the UAE Embassy of that country or the UAE Ministry of Foreign Affairs.

Yes, through the Guardian or Legal Representative.

No, it is not required. Your shares will be registered under your DFM Investor Number (NIN). However, to immediately trade with your allocated shares, you will need a registered account with a Trading Member. You can find the list of licensed DFM Trading Members at www.dfm.ae.

• Commercial Bank of Dubai (CBD)
• Dubai Islamic Bank (DIB)
• Emirates NBD
• Emirates Islamic Bank
• Abu Dhabi Islamic Bank (ADIB)
• First Abu Dhabi Bank (FAB)
  
• Mashreq Bank
• Ajman Bank
  

A fee of AED 2.00 per transfer is charged.

The following are the requirements to become a custodian member at Dubai CSD:

1. Provide a copy of valid custody license issued by the Securities and Commodities Authority (SCA).
2. Sign the custody agreement with the Dubai CSD.
3. Provide Dubai CSD with an authorized signatories list.
4. Provide Dubai CSD with a formal letter that identifies their member code in Dubai CSD’s system.
5. Send an official letter to identify the preferred payment method in the case of dividend distribution and sign the related admission and undertaking letter provided by Dubai CSD.
6. Send an official request for an annual subscription to the electronic connection to the CSD Equator system AS400 (optional).
7. A formal letter specifying the list of email addresses which the daily electronic reports will be sent to as well as another list for other issues related to Dubai CSD announcements and notification purposes.
8. A formal letter that includes the settlement account numbers (AED and USD) with one of Dubai CSD settlement banks.

Yes absolutely, custodians need to ensure that a copy of the renewed custody license once obtained from the SCA, is submitted to the DFM in order to ensure the continuity of services.

1. Complete Custodians Transfers form by the custodian.
2. Custodians should also provide a copy of the client’s written instruction of the same (signed). The signature will be verified against the signature on the “Entry of Investors Data” Form initially submitted (this only applies when the client is moving securities to a custody account).
3. Global custodian letter / SWIFT instruction of the same (if applicable).
4. Transfer fees (refer to the Services Catalogue)

• Custodian member profile content in Arabic.
  
• Custodian member profile content in English.
  
• Custodian member company logo (jpeg format).

• Fill the “Balance of Securities Statement” Form and deliver it either by hand, fax, or mail together with the related fees stamped and signed by the authorized signatory.
  

• Investor Name.
• Investor Number.
  
• Company Name.
  
• Quantity of securities to be transferred.
  
• Custodian’s account to deposit the securities in the agent’s account.
  
• Signature of authorized signatories (if any).
  
• Submission of fees by custodian.
  

• An official letter requesting the change of name identifying the investor's current / old name and Investor Number (NIN).
  
• Global custodian’s letter / SWIFT instruction of the same.
  
• Attach the official supporting document of the name change (stamped and signed by an authorized person).
  

1. The payment methods include: iVESTOR or Bank transfer.
   
2. IBAN number for AED and USD accounts details are mandatory (if wire transfer is selected as method of payment).
   
3. Sign and attach the related admission and undertaking letter provided by the DFM (see letter content letter template section at the end of the handout).

• Bank Account Transfer within the UAE (Custodian members): AED 25 per record - min. AED 150.
  
• Bank Account Transfer outside the UAE (Custodian members): AED 25 per record - min. AED 250.

The DFM Shari’a Index (DFMSI) aims to replicate the performance of the Dubai Financial Market Shari’a-compliant listed companies. The importance of the DFMSI stems from the following:

1. Strengthening the numerous successes of the initiative of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to position Dubai as the capital of Islamic economy globally.
2. Facilitating investors and mutual funds interested in trading in Shari’a-compliant companies in tracking the performance of these companies.
3. Attracting Islamic financial investments to the market by highlighting the available investments that are not based on interest or forbidden activities.
4. Providing historical data on the performance of Shari’a-compliant companies
5. Ease of comparing the performance of Shari’a compliant companies with the performance of traditional companies and with the performance of Shari’a compliant companies in other markets.

All classes of Shari’a-compliant ordinary shares listed on DFM are eligible for inclusion in the DFMSI.

Investors and mutual funds interested in trading in Shari’a-compliant companies listed on the DFM, data providers, market participants including listed companies

Yes, because protection of wealth is one of the major Shari’a objectives, and if the duty to protect wealth entails hedging, then hedging itself becomes a duty, because it is an established principle in the Shari’a that what is a prerequisite to a duty becomes a duty itself.

All development projects, including industrial, mining, extractive and infrastructural projects can be financed through Mudaraba, Musharaka and Istisna' Sukuk.

The advantages of financing through investment Sukuk are as follows:

1. It is a finance which is based on rights in ownership rather than the lending of money.
   
2. The Sukuk holders herein share the risks of the projects and also share the project proceeds with the Mudarib or the managing partner as per their agreement.
   
3. It does not require the taking of securities since the financiers own the project until the redemption or the maturity of the Sukuk.
   
4. The Mudarib or the managing partner may own the project before or at the end of the financing period.

It is valid to trade investment Sukuk which are used to finance projects so long as they represent tangible assets or usufructs as is the case with Mudaraba, Musharaka and investment Wakala Sukuk. This is because it is valid to sell the underlying assets of these Sukuk on any agreed price, spot or deferred, whereas the finance Sukuk, such as Murabaha and Istisna' Sukuk, and since they represent debt instruments and are normally of short maturity periods, these can be traded only at face-value and against a spot price.

The Maliki school, however, unlike the remaining Fiqh schools, allows upon the fulfillment of certain conditions the sale of the Salam asset before its delivery. Nevertheless, the Salam Sukuk holders or their representative still can sell, to a third-party through a parallel Salam, an asset similar in its specifications to the Salam asset. The delivery date in this case shall be later than the delivery date of the original Salam asset.

It is permitted to give, in the prospectus, the Sukuk originator the right to redeem the Sukuk before maturity and pay their value to their holders. This right shall be based on an undertaking given by the trustee who holds the Sukuk assets on behalf of their owners. 

It is valid to amend the duration and terms of the Mudaraba provided the amendment applies only to the remaining period, with no retroactive effect. Among the valid amendments are the profit distribution ratio and the incentive. Any amendment must, however, be mutually agreed upon between the two parties (the Sukuk manager and Sukuk holders or their representative).

If the shares were purchased for trading purpose then 2.5% of their market value is payable per annum (Hijri year) as Zakat. If, however, they were purchased with the aim of retaining them (as long-term investment) then the Zakat shall be the same over the net value of the zakatable assets, if this value was calculated and made available to shareholders by the company. Alternatively, shareholders can choose to annually pay 10% of their net profit, whether the profit was actually distributed or not.

 Refer to the concerned listed company regarding the percentage to be excluded from the dividends that have been decided to be distributed.

Yes it is permitted provided the following Shari'a parameters are adhered to:

1. The Shari'a repugnant income is less than 10% of total revenue which is subject to purification by the shareholder.
   
2. The interest-based borrowing does not exceed 30% of total assets.
   
3. The interest-based lending does not exceed 30% of total assets.

It is not permissible to deal in preferred stocks, if preferred stockholders have a preferential right in terms of profit distribution prior to other shareholders or in terms of receiving their rights prior to other shareholders in case of liquidation. Whereas if the preference is related to administrative matters (like voting rights), then dealing is permitted.

Non-Shari'a compliant companies either have prohibited income exceeding 10% of the total income, or it lends or borrows with interest beyond 30% of the total assets. Trading in such companies is not permissible even if the Shari’a repugnant income is totally purified.

Short sale is a sale of shares that the seller does not own. Where the seller borrows such shares to be returned later, for the purpose of making profit by selling it at a price that is higher than the price at which the seller will buy in the future and return to its lender (the owner).

Yes, Shari’a compliant- shares may be bought and sold on the same day.

The sale on the margin means that the broker lends the client an amount above the margin, i.e. the amount paid by the client, and the broker buys the shares on behalf of the client on condition that the client pays the loan amount within a specified period. If not, the broker is authorized by the client to sell the shares he bought at the market price if their price has reached the margin. From the selling price the broker recovers his debt and the balance, if any, is returned to the client. Shari’a permits the loan as long as it is free from explicit or hidden interest, and the commission taken by the broker in case of buying on the margin is considered hidden interest if it is above the commission normally charged for brokerage without lending. If the commission remains the same, then the transaction is valid because it involves no interest.

As part of Dubai Clear’s deployment of its “Delivery Versus Payment” (DVP) settlement mechanism, the Dubai Clear addressed the need to operate dual accounts to mitigate unlimited access by local Clearing Members to the trading accounts.

To achieve full control by local Settlement Agents over client accounts, Dubai Clear is implementing processes to provide local Settlement Agents the ability to reject buy and / or sell trades for settlement if matched settlement confirmations are not received from clients.

Please refer to Special Deal Procedures for the full details.

The DVP (Delivery Versus Payment) procedures are meant to ensure that investors using the services of a Settlement Agent for safekeeping of securities and as agents for financial settlement who settle their trades based on DVP principles, whereby securities are delivered only if payment is received and there are matched settlement instructions received by the Settlement Agent to settle the trade.

Any investor using a Local Settlement Agent to settle their trades executed through a Local Clearing Member will be impacted by the changes.

The enhanced DVP processes are only applicable to clients using a Local Settlement Agent for settlement and not to retail investors settling trades using their direct accounts with Local Clearing Members.

No. There are no changes to the way trading on the normal Dubai Clear is conducted. There is an alternative option for investors to sell securities via the Dubai Clear buy-in board. Investors will need to inform their Local Clearing Member if they intend to sell securities via the buy-in board.

The Dubai Clear changes are summarized as follows:

1. These enhancements impact Clearing Members dealing with clients which use a Local Settlement Agent for the settlement of trades, whereby a Local Settlement Agent can reject both securities and cash settlement of purchase and sell trades if it does not receive settlement instructions from its clients.
2. A ‘buy-in’ mechanism to facilitate settlement of rejected sell trades is also introduced whereby Clearing Members which do not trade for clients who settle trades using a Local Settlement Agent will be able to participate in a buy-in, by selling to any buy-in bids in the DFM buy-in board.
3. A Late Confirmation period of up to T+4 will be introduced for Local Settlement Agents clients to confirm settlement of trades. The Late Confirmation period is however subject to the Clearing Members agreement.
4. A Local Settlement Agent will now have full control of securities making it unnecessary to operate a dual account structure. This means that all securities may be held in one account of the Local Settlement Agents (i.e. the Agent Trading account). 

No, if the Local Member does not trade for clients using Settlement Agent for settlement, the impact to the Local Trading Member will be limited to the new buy-in feature introduced by DFM, where the Local Members can participate in a buy-in by placing offers to any buy-in bids under an open status. Only Local Members which trade for clients using a Local Settlement Agent for settlement will have to follow the DVP process.

Yes. A Local Settlement Agent can reject purchase / sell trades if no matched settlement instructions are received from clients.

When a Local Settlement Agent rejects a purchase trade, the buying Clearing Member will pay Dubai Clear the cash settlement obligations and Dubai Clear will credit the purchased securities to the designated rejection account under the control of the Local Clearing Member.

No, the enhanced processes merely allow clients using Local Settlement Agents for settlement more time to provide settlement instructions to the Local Settlement Agent. This Late Confirmation Period is subject to agreement by the executing Clearing Member and is subject to penalties.

Yes. However, the ‘Late Confirmation Window’ for purchase trades is subject to the client / Clearing Member agreement on due dates for late payments. The proposed ‘Late Confirmation Window’ for purchase trades is merely a facility provided by Dubai Clear to facilitate any subsequent transfers arising from a settlement agreement between the client and the Clearing Member.

Clients may utilize a ‘Late Confirmation Window’ within which instructions may be provided for settlement of a rejected purchase / sell trade subject to late settlement agreement between the client and its Clearing Member. This Late Confirmation Window begins on T+2 and will end on T+4. The last settlement day of the Late Confirmation Period will be T+4.

Yes. A client has the option to settle rejected purchase trades within the Late Confirmation Period, therefore beginning T+2 and ending on T+4, subject to agreement by the Local Clearing Member and provided the local Clearing Member has not sold the purchase securities.

The Local Settlement Agent will contact the Local Clearing Member to arrange for the transfer of securities back to the client’s Agent Trading account subject to payment by the Local Settlement Agent to the Local Clearing Member first.

Once a sell trade is rejected by the Local Settlement Agent, Dubai Clear will determine if the Local Clearing Member has sufficient balance of securities in the designated rejection account. If there is sufficient balance in this account, Dubai Clear will debit this account, settle the rejected sell trade and pay the Local Clearing Member the cash proceeds on T+2.

If the Local Clearing Member does not have sufficient balance in the designated rejection account, Dubai Clear will create a negative available balance under this account and will retain the cash proceeds until final resolution of the failed trade.

Dubai Clear will retain the ‘Pending’ status flag on the securities held under the client’s Agent Trading account until final resolution of the failed trade.

In order to rectify the negative available balance in the designated rejection account, the following 4 options are available:

1. Local Clearing Member buys securities directly from the Company for settlement before the last settlement day of the Late Confirmation Period
2. Late Confirmation Window can be utilized wherein client provides matched settlement instruction to Local Settlement Agent subject to agreement by the Local Clearing Member
3. The buy-in mechanism is utilized by the Clearing Member / DFM, or
4. A mandatory cash closeout against the original seller if the above options are unsuccessful to resolve a sale rejection. 

Yes. The client can send request settlement by providing matched settlement instructions within the Late Confirmation Period, therefore beginning T+2 and ending on T+4, provided the Local Clearing Member has not settled the sale rejection.

The Late Confirmation Period is from T+2 to T+4 or S+2. The Late Confirmation Period is a market infrastructure provided by the Dubai Clear to facilitate trade settlement for clients using a Local Settlement Agent for the settlement of trades. It is a decision of the Local Clearing Member to determine whether or not a Late Confirmation Period should be offered to its client using a Local Settlement Agent for settlement.

Yes. Acceptance of the Late Confirmation by the Local Clearing Member is on a discretionary basis and provided that the rejected trades have not already been settled by the Local Clearing Member in the market either directly or via the buy in mechanism.

If a client does not provide settlement instructions within the Late Confirmation deadline to settle the purchase trade, the Local Clearing Member will dispose of the securities underlying the rejected purchase trade latest by 2 market days after the end of the Late Confirmation Period.

No penalties for any reversal of rejections executed by Dubai Clear on T+2.

Yes, a penalty will be applied for a minimum of AED 500 or the total order values of each sell/buy rejection transaction X 0.05%.

Yes, a penalty will be applied for a minimum of AED 2500 or the total order values of each sell/buy rejection transaction X 0.25%.

The Transfer Fees will be levied for two situations:

1. T+5 Transfer Fee: this Transfer Fee will be applicable where the Clearing Member failed to transfer the paid purchased securities from the Client Buy Rejection Account to the client’s Agent Account of a Settlement Agent by T+4 upon receiving payment from the client within the Late Confirmation Period of T+2 to T+4.
2. T+6 Transfer Fee: this Transfer Fee will be applicable where the Clearing Member failed to transfer unpaid purchased securities from the Client Buy Rejection Account to the Members’s Buy Rejection Sellout Account by the existing prescribed T+5 deadline.

The features of the buy-in mechanism are as follows:

• The buy-in process is managed via the DFM trading system. The buy-in board will be available for input of offers by new sellers daily between 3.30pm and 3.45pm UAE time. Clearing Member with negative available balances can opt to post buy-in bids to the buy-in board from 3:15pm on T+2 onward until the settlement day before the last settlement day of the Late Confirmation Period.
• All Clearing Members (including the selling Local Clearing Member) will be permitted to participate in the buy-in and offer their own securities or their client securities in the Buy-in by quoting the relevant NIN investor number. The client whose securities are being bought-in cannot offer his securities to the buy-in. Other clients may choose to offer their securities in the buy-in through their Local Clearing Member.
• The maximum buy in price can be the daily closing price plus fifteen percent (duly adjusted for any corporate actions).
• Partial completion of buy-ins will be allowed.
• The matching algorithm is best price offered, volume and time priority until the quantity is obtained.
• The securities will settle on the same day of the buy-in, whilst the cash will settle on the next day (i.e.T+1 basis). This is mainly due to the fact that the Central Bank of the UAE is closed by this time and the cash can only move on the next day.
• Dubai Clear will pay the buy-in cash proceeds to the new Selling Clearing Member. If the buy-in price is greater than the original traded price, the Local Clearing Member must pay the difference. However, if the buy-in price is lower, then the Dubai Clear will retain the gains.

Where the buy-in against the Local Clearing Member fails, a cash closeout against the Local Settlement Agent client will be invoked by Dubai Clear.

A buy-in may be used only by a Selling Clearing Member when there is a negative balance in the designated rejection account.

Please read the Dubai Clear Collateral Policy to know about the procedures of increasing the Collateral.

• View Dubai Clear Bank Guarantee template.

• View the minimum collateral requirement for each membership type.
  

The Clearing Member must coordinate with the Issuer bank of the Bank Guarantee to send an official letter addressed to the Dubai Clear requesting Dubai Clear to issue a No Objection Letter for the reduction of the Bank Guarantee amount.

The Clearing Member must coordinate with the Issuer bank of the Bank Guarantee to send an official letter addressed to the Dubai Clear requesting Dubai Clear to cancel the requested bank guarantee.

If the Clearing Member desires to change settlement bank and deal with other Dubai Clear settlement banks, they must follow the steps below:

1. Send an official letter addressed to the Dubai Clear stating the following:
   • Settlement Account Number with the New Settlement Bank
   • Determine the date on which the settlement will commence with the New Settlement Bank
   • Undertake to pay all of its obligations with the Current Settlement Bank
2. Send a copy of the undertaking letter that is addressed to the New Settlement Bank (Stating the new settlement account in AED and USD).
3. Send a copy of the New Settlement Bank’s letter confirming the settlement account number and the Clearing Member name.
4. Send an undertaking letter addressed to Dubai Clear of not trading in dollars (in case the broker does not wish to open a dollar account). 

• directly with the DFM;
• through a DFM broker member;
• through a DFM custodian.

Each year, the external auditor is appointed by the shareholders during the Annual General Meeting. Price Waterhouse Coopers (PWC) was appointed for 2022. 

A request should be sent by the Securities Commodities Authority (SCA) to the DFM Market Operations Department and another email sent to the brokerage company of the required documents to be submitted. Once all the required documents have been received, a copy of the Accreditation Letter will be emailed to the brokerage company.

Requirements:

1. SCA’s License/ or approval letter
2. paid up capital shall not be less than AED 30 million
3. Sufficient number of approved jobs
4. Provide Connectivity Lines
5. Conformance Document
6. A minimum of AED 10 million collateral

1. Employee name
2. Specify your request for one or both systems: Matching engine and / or Equator (AS400) 
3. Attach the DFM accreditation letter with your request for username requests on the Matching engine system.
4. Specify privileges for any username request on the Equator (AS400) system:
   1. Query / Read Option
   2. Post / Write Option
5. Specify the required usernames on the Matching engine system:
   1. Trader Username
   2. Public Username
   3. Internet Trading Username
   4. Other (please specify)

An exchange-traded fund (ETF) is an Investment fund traded on stock exchanges, much like stocks. An ETF Unit holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as a stock index or bond index.

ETFs traded like stocks, ETFs offer the advantage of being liquid. They can be bought or sold any time during trading hours. They can also be purchased on margin, ETFs have low management fees.

ETFs are more accessible to small investors because investors can buy individual units of an ETF, while many mutual funds have minimum investments.

ETFs provide easier access to alternative investments, creating a broader range of investment opportunities. There are ETFs that invest in commodities and foreign exchanges, and offer the ability to invest extensively in foreign and emerging markets.

Diversified like a fund but trades like a stock.

Unlike a mutual fund that has its net-asset value (NAV) calculated at the end of each month, an ETF's price is calculated and changes throughout the day, fluctuating with supply and demand.

Yes, ETF Units trade like Shares.

Yes, you can trade through your DFM licensed-broker.

ETFs settle in two working days (T+2)

Yes, you have to have a DFM NIN to invest in DFM-listed ETFs. 

No, there is no minimum and maximum on the number of units that can be bought.

• Incentive to make profits with minimal amount of capital investment in the form of margin instead of full contract value. However, these instruments are subjected to higher risk as well.
• Provides liquidity, enables price discovery in the underlying market.

Equities and Futures are identified separately.
Futures will have the word “FUT” to identify it as the Futures ticker.
For example, Futures on Emaar Properties for the September 2020 expiry will be “EMAAR FUT – September 2020”.

We make trading Futures easy for you. No matter your nationality or which country you are based in, you can apply to trade DFM Futures.

• As a first step, if you are over 18 years of age you can open a trading equity and derivatives account with any of the DFM derivatives brokers. All trading on DFM is through brokers and a list you can find here If you already have an account for trading shares, simply adding derivatives trading is done with your existing broker if they are a derivatives member
• Next, make sure your account has a balance for the margin required for trading DFM futures contracts. For the DFMGI future this is 5% for each contract, or AED 1800 dirhams per contract.
• Place an order with the broker to either buy or sell the equity Futures contract by calling your broker, internet or mobile trading).
• The order will be sent to the DFM derivatives market and executed if a matching price is available. The trade will be registered for clearing and settlement with Dubai Clear.
• Any profit or loss made due to a change in the market price of the Futures contract is settled after the close on a daily basis as Variation Margin.
• Once a position is closed, any Initial Margins related to this position, after any profit or loss, will be released.
• For investors holding the contract to expiry, the contract will be automatically closed and settled by Dubai Clear with the final settlement price.

Investors should continue to educate themselves about the opportunities and risks associated with futures trading. DFM Investors can access videos and more on the DFM Equity Futures resource center.

A market maker provides liquidity to the market. Market makers are financial institutions that simultaneously offer both Bid and Ask prices for the contract.

They provide investors with the opportunity to enter and exit positions in the DFM traded Futures. Currently (June 2023) the DFM Futures’ market has three market makers quoting a minimum of 5 contracts on each buy ad sell-side of the market. This guarantees a minimum liquidity to investors.

A Long Position means that you have bought one or more futures contracts resulting in a net position which profits if the market goes up. A Short Position means that you have a position where you have net sold more contracts which profits if the market drops.

After the close of each trading day and if the market in your future contract has moved, you either have a gain or loss in your account. Variation Margin is the process of crediting or debiting this profit or loss from your account. For example, if you bought a stock at AED 2, until you sell the stock all your gains and losses are unrealized. But if you bought the futures contract at AED 2, and the price went up by the end of the day, you will have a cash gain realized in your account. If the price went down, you will have a cash loss in your account.

There are no overnight finance charged to your account, a distinct difference with Contracts for Difference (CFDs)

All investors who have a NIN (National Identification Number) with DFM are eligible to trade in DFMGI Futures and all other derivatives products i.e. Single Stock Futures SSF and DME Micro Oman Crude Oil futures OMOIL.

1. If an investor has an account with one of the DFM approved derivatives members, then they can trade DFMGI futures through the same account. There are no additional requirements.
2. For new investors, to start trading index futures, investors first need to register as a client with a DFM derivatives member and fulfill the Know Your Client (or KYC) requirements.
3. Once investors sign up with a member, they will be given a risk disclosure statement to sign. This will allow them to trade in derivatives on DFM.

By taking Long or Short position in a future contract, the investor needs to deposit a minimum amount of acceptable collateral as an Initial Margin with the member. Initial Margin rates for DFMGI Futures is 5% as prescribed by Dubai Clear. However, members have the right to ask for a higher Initial Margin depending on the risk profile of the client. When the client closes the position (sell to close Long position and buy to close short position), the balance of the Initial Margin is released.

Example:

On September 1, 2023, an investor buys a 1 contract of DFMGI Futures at a price of AED 3,500 September 2023 expiry.

• Contract Size is 10 and Initial Margin is 5% per contract.
• Expiry day of the contract will be 17 September 2023
• The contract value is AED 35,000 (1 * 3,500 * 10)