Retail broker VT Markets announced on Monday morning that it has received regulatory approval for a Category 5 license in the United Arab Emirates (UAE).
The license, which is issued by the local Securities and Commodities Authority (SCA), has become a popular one for brokers looking to expand in the Gulf state and wider Middle East region.
Brokers who get a Category 5 license can operate like an introducer or tied-agent.
They have the ability to market products and services, as well as being permitted to introduce business to a related entity, but they cannot hold client funds or offer any kind of securities dealing.
VT Markets has regulated entities in South Africa and Mauritius.
It’s most likely that the company will introduce business using its UAE license to the Mauritius entity, as this one has a full set of permissions, including market making.
“We’re proud to announce that VT Markets is now officially licensed under Category 5 by the Securities and Commodities Authority (SCA) in the United Arab Emirates,” the brokerage group said in a statement. “This recognition reflects our commitment to regulatory compliance in the financial services sector.”
Several other firms have acquired a Category 5 license in the UAE over the last 12 months. That includes Taurex and INGOT Brokers.
