Ch 7 — Trading

Why this chapter matters. 11 exam questions. Heavy on operational thresholds. Trap zones: e-trading 1yr / 31 Dec expiry, broker reports 45/90 days, block deal 1% size / ±25% price, settlement timing 08:00/09:00/09:30, CSD retention 15 years, pledged securities 50% max, CCP capital AED 50m / skin AED 10m / margin 99% / stress daily, plus the DGCX contracts (Gold 32oz, Silver 1000oz, etc.).

7.1 E-Trading & broker reports

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E-Trading approval — 1 year, expires 31 December syllabus 7.1

SCA approval of an E-Trading system is valid for 1 year, and all approvals expire on 31 December regardless of when granted. The fixed-expiry design simplifies supervisory cycle planning. Mid-year approvals therefore have short first periods.

Back-up data retention — 10 years syllabus 7.1

Trading systems must retain back-up data for ≥ 10 years. Aligns with the broader Ch 2 retention baseline.

Brokerage reports — 45 / 90 day pair syllabus 7.1

Quarterly report

Within 45 days of quarter end

Annual report

Within 90 days of FY end

Memory anchor: "45 / 90". Annual is double the quarterly window — same pattern as Ch 3 fund reports (45 / 3 months).

Foreign broker — 6-month clean record syllabus 7.1

For a foreign broker to be approved, professional records must show a clean record over the previous 6 months. Shorter than the typical fit-and-proper lookback because foreign brokers are operating on a more contained UAE footprint.

7.2 Block deals & settlement

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Big block deal — 1% size / ±25% price syllabus 7.2

Minimum size

≥ 1% of issuer's capital

Price tolerance

±25% of previous closing price

Smaller deals go through the order book. The ±25% wide price band reflects the negotiated nature of block deals (size discounts / premiums).

Settlement day timing — 08:00 / 09:00 / 09:30 syllabus 7.2

Time	Step
08:00	CSD report time
09:00	Funds must be in settlement account
09:30	Bank transfer time
15:00 (3pm)	Trade-day objection deadline

Memory: each step is 30 minutes after the last (08:00 → 08:30... but actually the CSD report is at 08:00 then funds 09:00 — a full hour jump, then 30 minutes to bank transfer). The 3pm objection deadline is separate.

7.3 CSD & pledged securities

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CSD record retention — 15 years syllabus 7.3

The CSD must retain records for ≥ 15 years — longer than the standard 10-year baseline because the CSD holds the ownership-of-record evidence for listed securities.

Register deposit — 5 working days syllabus 7.3

After listing approval, the issuer must deposit the shareholder register with the CSD within 5 working days.

Bonus share fractions — sold within 30 days syllabus 7.3

Fractional entitlements from bonus issues must be sold and proceeds distributed within 30 days.

Pledged securities — 50% market value cap syllabus 7.3

Securities can be pledged for borrowing purposes up to a maximum of 50% of their market value. The cap is a prudential lending constraint to prevent excessive leverage against market-priced assets.

7.4 Commodities CCP

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CCP capital & fees syllabus 7.4

Paid-up capital

≥ AED 50 million

Licence fee

AED 200,000

Skin in the game

Minimum AED 10 million

Independent board

≥ 1/3 (min 2 members)

Margin & default fund syllabus 7.4

Margin requirements must be set at 99% confidence level
Default fund stress testing: daily

7.5 DGCX commodity contracts

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DGCX Gold Futures syllabus 7.5

Contract size: 32 troy ounces
Minimum price movement: US$0.10 per troy ounce
Last trading day: two business days prior to the last business day of the delivery month

DGCX Silver Futures syllabus 7.5

Contract size: 1,000 troy ounces (±10%)
Minimum price movement: US$0.005 per troy ounce

Shanghai Gold Futures — the exception syllabus 7.5

Last trading day = 15th calendar day of the delivery month. This is the EXCEPTION to the "two business days prior to last business day" pattern used by Gold / India Gold Quanto / Silver.

Crude oil delivery months syllabus 7.5

Brent Crude

18 monthly

WTI Crude

18 monthly + 10 semi-annual

7.6 Cheat sheet — all the numbers

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Every Ch 7 threshold in one place exam day

Topic	Threshold
E-Trading approval period	1 year (expires 31 Dec)
Back-up data retention	10 years
Brokerage quarterly reports	Within 45 days
Brokerage annual reports	Within 90 days
Foreign broker clean record	6 months
Big block deal — minimum size	≥ 1% of issuer's capital
Big block deal — price range	±25% of previous closing
CSD record retention	≥ 15 years
Register deposit after listing	5 working days
Bonus share fractions sold	Within 30 days
Pledged securities — max market value	50%
Settlement — CSD report time	08:00
Settlement — funds in account	09:00
Settlement — bank transfer time	09:30
Trade-day objection deadline	3pm
Commodities CCP — paid-up capital	AED 50 million
Commodities CCP — licence fee	AED 200,000
Commodities CCP — independent board	≥ 1/3 (min 2)
Commodities CCP — skin in the game	AED 10 million
Margin requirements confidence	99%
Default fund stress testing	Daily
DGCX Gold contract size	32 troy ounces
DGCX Gold min price move	US$0.10 per oz
DGCX Silver contract size	1,000 troy ounces (±10%)
DGCX Silver min price move	US$0.005 per oz
Shanghai Gold — last trading day	15th calendar day of delivery month
Brent Crude delivery months	18 monthly
WTI Crude delivery months	18 monthly + 10 semi-annual

The "memorise the numbers" chapter

🎯 75 calibrated Ch 7 questions in the bank.
📊 Commodity contract specs are pure memorisation — use the calc-drill mode.

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