CMA Decision No. 56/R of 2012 · UAE Federal
Amending instrument that changes the Listing and Trading of Commodities Regulations (CMA Decision No. 157/R of 2005). The CMA has consolidated its changes into the current text of the amended regulation and keeps this instrument in its archive of amending regulations.
Board Decision No. 56 of 2012 rewrote the brokerage rules of the Listing and Trading of Commodities and Commodities Contracts Regulations (Board Decision No. 157/R of 2005) and extended the regulations from commodities to options and futures. Issued in Abu Dhabi on 30 October 2012, it took effect the day after publication in the Official Gazette (Article 5). The CMA publishes it only as a scanned Arabic document; its changes are consolidated into the CMA's English text of the 2005 regulations, where footnotes attribute Article 1, numerous articles in Parts Two, Five and Six, and all of Part Three to it.
Article 1 replaced the definitions in Article 1 of the 2005 regulations, introducing three classes of brokerage firm (trading member, trading and clearing member, and general trading and clearing member), the introducing broker who contracts with a brokerage firm to bring in clients, options and futures contracts over commodities, indices, currencies and other instruments approved by the Board, and free zone companies. Article 2 substituted the phrase commodities, options contracts or futures contracts for the word commodities where the context requires. Article 3 replaced Part Three (Articles 3-1 to 3-14) on licensing brokerage: an annually renewed Authority licence and registration; no brokerage firm as partner in another and a 20% cap on a partner's stake in a second firm; minimum capital of AED 1 million for a trading member and AED 2 million for clearing members; applications through the market, with the Authority deciding within 30 days; an annual audited Net Current Tangible Assets report; filing of introducing broker agreements; and sanctions from five-day market suspension to cancellation. Article 4 gave existing brokers one year from publication to regularise. Later decisions cancelled Article 3-8 (2017), amended Article 3-11 (2019), added Article 3-12 bis (2020) and replaced the options and futures definitions (2022).
Licensed commodities markets in the UAE, brokerage firms and trading members dealing in commodities, options and futures on them, introducing brokers, and foreign brokers seeking to operate on those markets.
Arabic original text in 11 passages. Open the full text or jump to a provision:
| Article 1 | Replaces the definitions in Article 1 of the 2005 regulations, adding trading member, trading and clearing member, general trading and clearing member, introducing broker, options and futures contracts over commodities, indices and currencies, and free zone companies. |
| Article 2 | Substitutes commodities, options contracts or futures contracts for the word commodities throughout the 2005 regulations where the context requires. |
| Article 3 | Replaces Part Three with Articles 3-1 to 3-14: annual licence, 20% partner cap, capital of AED 1 million (trading member) or AED 2 million (clearing members), market-set guarantee, and exemption for foreign brokers with five years' experience from capital, staff and premises conditions. |
| Article 3 | New Articles 3-10 to 3-12 require a risk manual and internal bylaws within three months, an audited Net Current Tangible Assets report within 30 days of year end, filed introducing broker agreements and ten-year order records. |
| Article 4 | Entities already carrying on brokerage must regularise their position within one Gregorian year from publication in the Official Gazette. |
| Article 5 | Published in the Official Gazette and in force from the day following publication. |
New Article 3-14 lets the market suspend a brokerage firm for up to five working days and the Authority warn, fine up to the statutory maximum, suspend for up to one year or cancel the licence; accredited staff face warning, suspension of up to two months or cancellation of accreditation for serious breach.
Clients who want to introduce investors to a commodities or derivatives broker for a fee often assume no licence is needed. Since this amendment the introducing broker is a defined role whose agreement the broker must file with the regulator. Polaris is not licensed by the CMA and does not broker or introduce clients for trading. We explain the role and its limits, form and administer the client's company, coordinate with the licensed broker and adviser, and keep corporate, UBO and AML records in order.
| Amends | CMA Decision No. 157/R of 2005 |
“Cites” and “Cited by” are built automatically from references in the full texts held in this library; they cover only instruments in the library.
Listing and Trading of Commodities Regulations
Regulates the listing and trading of commodities and commodity contracts on licensed commodities markets, including the obligations and financial reporting of licensed me…
Amendment 8/Chairman of 2022 to Listing and Trading of Commodities Regulations
Amending instrument that changes the Listing and Trading of Commodities Regulations (CMA Decision No. 157/R of 2005). The CMA has consolidated its changes into the curren…
Amendment 4/R of 2020 to Listing and Trading of Commodities Regulations
Amending instrument that changes the Listing and Trading of Commodities Regulations (CMA Decision No. 157/R of 2005). The CMA has consolidated its changes into the curren…
Amendment 35/Chairman of 2019 to Listing and Trading of Commodities Regulations
Amending instrument recorded in the amendment notes of the Listing and Trading of Commodities Regulations (CMA Decision No. 157/R of 2005). The CMA has consolidated its c…
Clearing Operations in Commodities Markets Regulations
Sets the rules for clearing operations in licensed commodities markets, covering the clearing entity and its members, clearing procedures and obligations, and the Authori…
Former Brokerage in Securities Regulation
Board regulation on brokerage in securities, amended several times and now listed by the CMA among superseded regulations.
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