Chapter 7 · Trading

11 exam questions · brokers, block deals, settlement, CCP, DGCX
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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.).
2026 update: the SCA is now the CMA. On 1 January 2026 the UAE Securities & Commodities Authority (SCA) became the Capital Market Authority (CMA). The CISI workbook and this exam still say "SCA", so treat the two names as the same regulator. Existing SCA decisions and resolutions stay in force until the CMA replaces them.

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

TimeStep
08:00CSD report time
09:00Funds must be in settlement account
09:30Bank 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

TopicThreshold
E-Trading approval period1 year (expires 31 Dec)
Back-up data retention10 years
Brokerage quarterly reportsWithin 45 days
Brokerage annual reportsWithin 90 days
Foreign broker clean record6 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 listing5 working days
Bonus share fractions soldWithin 30 days
Pledged securities — max market value50%
Settlement — CSD report time08:00
Settlement — funds in account09:00
Settlement — bank transfer time09:30
Trade-day objection deadline3pm
Commodities CCP — paid-up capitalAED 50 million
Commodities CCP — licence feeAED 200,000
Commodities CCP — independent board≥ 1/3 (min 2)
Commodities CCP — skin in the gameAED 10 million
Margin requirements confidence99%
Default fund stress testingDaily
DGCX Gold contract size32 troy ounces
DGCX Gold min price moveUS$0.10 per oz
DGCX Silver contract size1,000 troy ounces (±10%)
DGCX Silver min price moveUS$0.005 per oz
Shanghai Gold — last trading day15th calendar day of delivery month
Brent Crude delivery months18 monthly
WTI Crude delivery months18 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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