The Emirates Securities and Commodities Authority announced today, Monday, that it is reviewing and approving the controls of trading derivative contracts regulating the Dubai Financial Market.
and the Authority stated in a statement, that according to that approval, (a derivative member) can enter into agreements with its clients to trade according to their orders in regulated derivative contracts after the client deposits the specified initial margin. From the central clearing in his own account and his pledge to feed that account immediately when the value of the initial margin decreases to the maintenance margin, in order to return the client's account to the initial margin.
The controls also included the market procedures that the market may take in order to maintain the proper functioning of it, and to ensure that none of the applicable legislations is violated.
Dubai Market will organize a series of introductory sessions via network technologies for brokerage firms and investors, to review all the details related to future contracts, trading rules and clearing arrangements for the new stock derivatives platform.
It is worth noting that financial derivatives are financial contracts whose value is linked to the value of the underlying asset, as they are complex financial instruments that are used for various purposes on a wide scale to speculate and achieve good potential returns, The value of the underlying asset changes according to market conditions.
