| 1. | All VASPs Licensed by VARA to carry out Exchange Services that wish to provide ETD Services must apply to VARA for approval to carry out ETD Services. |
| 2. | VASPs seeking authorisation from VARA to provide ETD Services shall adhere to the licensing process as prescribed by VARA from time to time which may include, but not be limited to, the VASP demonstrating, to VARA's satisfaction, compliance with the following requirements—
| a. | full details of the types of ETDs to be offered by the VASP as part of the ETD Services; | | b. | appropriate policies, procedures, systems and controls to manage the risks associated with the ETD Services to be provided by the VASP, which shall include, but not be limited to, all systems and controls required in this Part V of the Exchange Services Rulebook; | | c. | details of all terms and conditions upon which the VASP proposes to offer ETD Services to clients, including a copy of the template ETD Services Agreement to be used by the VASP; | | d. | risk disclosures, product descriptions, product terms and margin requirements; | | e. | descriptions of close-out, liquidation and loss mutualisation procedures; | | f. | details of any Insurance Fund and other risk management tools; | | g. | client communications and press releases; | | h. | marketing and/or client acquisition campaigns, including any referral schemes; | | i. | information relating to the VASP's financial condition; | | j. | compliance with any disclaimer requirements imposed by VARA; and/or | | k. | any other requirements stipulated by VARA.
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| 3. | Where VARA considers that it has reasonable cause and/or it is necessary for performing its functions and fulfilling its objectives under the Dubai VA Law, VARA may, in its sole and absolute discretion, amend the Rules in this Part V of the Exchange Services Rulebook and/or impose any additional conditions or restrictions on any VASP providing ETD Services, from time to time. Such additional conditions or restrictions may include, but shall not be limited to, the following— | a. | Capital and Prudential Requirements in addition to those in Part VI of the Company Rulebook; | | b. | additional requirements for any classification of investor including, but not limited to, Retail Investors; | | c. | additional requirements for any ETD or type of ETD; | | d. | additional requirements or restrictions on the Underlying Assets for which ETD Services can be provided; | | e. | require a VASP to cease or temporarily suspend ETD Services for any ETD or type of ETD; | | f. | impose limits on the value, size or exposure of any single ETD position or the total value of ETD Services that may be provided; and/or | | g. | amend as may be necessary, any conditions imposed by VARA as stipulated in a VASP's Licence.
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| 4. | Notwithstanding a VASP having authorisation from VARA to provide ETD Services, where VARA considers that it has reasonable cause and/or it is necessary for performing its functions and fulfilling its objectives under the Dubai VA Law, VARA shall have the power, in its sole and absolute discretion, to instruct a VASP to take any of the following actions at any time, and the VASP must comply with such instructions within the time period specified by VARA—
| a. | suspend ETD Services for any specific ETDs, type of ETDs, clients or Underlying Asset; | | b. | close-out and/or liquidate existing ETD positions for any specific ETDs, type of ETDs, clients or Underlying Asset; | | c. | increase ETD Initial Margin and/or ETD Maintenance Margin for any specific ETDs, type of ETDs, clients or Underlying Asset; | | d. | increase the amounts held in any Insurance Fund, or implement an Insurance Fund if not already a requirement; | | e. | amend or adjust any close-out, liquidation, risk management and/or insurance mechanisms; | | f. | have and maintain additional insurance; and/or | | g. | increase the VASP's Operational Exposure requirements.
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| 5. | VARA will endeavour to provide as much notice as possible prior to any action under Rule V.B.4 being required. However, should any such action be deemed necessary by VARA to avoid severe market impact, VARA may mandate VASPs to take such actions immediately. |