General Clearing Membership

General Clearing is a financial activity regarding the transactions of clearing and settlement for the contracted entity accounts and the accounts of the clients of this entity.

The following entities may apply for a GCM membership with Dubai Clear after the applicant has obtained a license from SCA to conduct general clearing activities:

• A brokerage company licensed by SCA:
  • Either for trading and clearing trades for its own clients only;
  • Or for trading and clearing of trades for its own clients and clients of other Trading Members;
• A local bank or a branch of a foreign bank licensed to operate in the UAE and licensed by SCA to:
• Practice safe custody of securities and will be carrying out clearing and settlement transactions only for its clients;
• Carry out clearing and settlement transactions for the account of brokerage companies and their clients; and
• A foreign clearing member licensed by a regulator in its jurisdiction to conduct general clearing activity and licensed by SCA to practice general clearing activity.

Having met the SCA licensing requirement, the GCM applicant must register with the Dubai Clear as GCM first before commencing GCM operations.
The GCM applicant must submit the following to Dubai Clear for its registration:

• Copy of any relevant compliance with SCA’s requirements including copy of SCA license with the copy of completed registration form as per format in Appendix 1;
• An amount of Guarantee in such form as determined by the CCP. Guarantee can be either in guarantee letter or cash, or a combination of guarantee letter and cash.
• For GCM applicants conducting Dubai Clear for DVP trades, a completed Payment Undertaking Agreement as per format in Appendix 2 or a format as may be approved by Dubai Clear.
• Copy of cash account debiting authorization to the GCM applicant’s Dubai Clear settlement bank as per format in Appendix 3.
• Sign General Clearing Member Admission Agreement with Dubai Clear.

A GCM applicant must not commence operations before Dubai Clear has approved the registration of GCM and setup the GCM in the Dubai Clear systems.

• Registration Form
• Cash or Guarantee Letter
• Payment Undertaking Agreement for DVP Trades
• Cash Account Debiting Authorization