Brokerage group EC Markets announced on Tuesday that it has received approval for a Category 5 license from the Securities and Commodities Authority (SCA) in the United Arab Emirates (UAE).
“Securing the SCA licence is a strategic milestone for EC Markets,” said Matthew Smith, Chairman and CEO of EC Markets. “This approval reflects not only our commitment to the highest standards of compliance but also our ambition to deliver innovative, transparent, and reliable financial services.”
EC Markets already holds licences in the UK, Australia, New Zealand, Mauritius, Seychelles, and South Africa. The company said it used Cypriot law firm Varnavas Playbell to secure the new license in the UAE.
Category 5 licences are booming
Category 5 licences have become popular among brokers as a way of marketing and selling their services in the UAE.
The license is similar to a tied agent or introducing broker licence. Brokers can promote and market services in the Gulf state but cannot hold client assets or deal in securities. Instead the license holder typically introduces the client to sign up with another company entity that has a license elsewhere.
EC Markets is one of several firms to have received the license over the last 12 months.
Rival brokers Taurex and VPFX, for example, have both received approval from SCA to operate using a Category 5 license since the end of last year.
The approval also reflects the boom that’s taking place in the market and wider region. Brokers are increasingly making Dubai a focal point for their operations, using the city-state as a base of operations for their global activities and are targeting UAE clients and other Gulf states.
