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The Broker Dealer Contract serves as the primary agreement governing the relationship between licensed securities brokers and their clients in the United Arab Emirates. This document is essential for any entity providing broker-dealer services in the UAE markets and must comply with the Securities and Commodities Authority (SCA) regulations, UAE Federal Law No. 32 of 2021, and other applicable financial services regulations. The contract typically includes comprehensive terms covering trading services, regulatory compliance, risk management, client asset protection, and operational procedures. It is particularly important for firms operating in UAE financial markets, including those in financial free zones like DIFC, and must address both conventional and Islamic financial services where applicable. The agreement should be used when establishing new broker-dealer relationships or updating existing arrangements to ensure compliance with current UAE regulatory requirements.

1. Parties: Identification of the broker-dealer and the client, including licensing and regulatory status

2. Background: Context of the agreement and regulatory framework under which services are provided

3. Definitions: Key terms used in the agreement, including regulatory and market-specific terminology

4. Scope of Services: Detailed description of broker-dealer services to be provided, including permitted activities under UAE regulations

5. Regulatory Compliance: Obligations to comply with UAE laws, SCA regulations, and other applicable regulatory requirements

6. Client Classification: Classification of the client according to UAE regulatory requirements and resulting obligations

7. Orders and Execution: Process for placing, executing, and settling trades

8. Fees and Commissions: Detail of all fees, commissions, and charges applicable to the services

9. Client Money and Assets: Handling and protection of client funds and securities as per UAE regulations

10. Representations and Warranties: Standard and regulatory-specific representations from both parties

11. Risk Disclosures: Mandatory risk warnings and disclosures required under UAE law

12. Reporting and Documentation: Requirements for trade confirmations, statements, and regulatory reporting

13. Conflicts of Interest: Procedures for identifying and managing conflicts of interest

14. Term and Termination: Duration of agreement and circumstances for termination

15. Confidentiality: Protection of confidential information and data privacy requirements

16. Governing Law and Jurisdiction: Application of UAE law and jurisdiction for disputes