insights Article

VARA Exchange Rulebook – Exchange Traded Derivatives

VARA has recently amended the Exchange Services Rulebook on 31 March 2026 to incorporate new provisions and updates across its regulatory framework.

The latest updates to the Exchange Services Rulebook signal a clear shift in how Dubai is approaching Exchange Traded Derivatives (ETDs). The tone and shift in structure is more deliberate, more risk-aware, and much closer to traditional market structure.

1. ETDs are now a controlled activity

Offering derivatives is no longer an automatic extension of an exchange license. Firms need explicit approval and must show they can manage the operational and risk complexities involved. This includes having the right systems, disclosures, and controls in place before going live, not after.

2. No more Proprietary Trading for Exchanges

Exchanges are no longer allowed to trade on their own accounts. This removes a major source of conflict and reinforces their role as neutral infrastructure providers. It also aligns more closely with expectations seen in traditional financial markets.

3. Suitability is no longer optional

Access to derivatives must be earned. Firms need to assess whether clients understand the risks and can handle potential losses. This is not a one-off onboarding step either, it is something that must be monitored on an ongoing basis.

4. Retail leverage is capped

Retail investors are limited to 5:1 leverage. It is a simple rule, but an important one in reducing excessive risk-taking and limiting the speed at which losses can build. Firms are also expected to step in if client outcomes suggest the risks are not being properly managed.

5. Stronger risk controls behind the scenes

From margin requirements to real-time monitoring and forced liquidations, the expectation is clear: platforms must actively manage risk now, not just facilitate trading. The focus is on preventing losses from escalating, rather than reacting after the fact.

6. Insurance funds and loss management

Firms are expected to maintain buffers to absorb losses, with clear rules on how shortfalls are handled if things go wrong. Loss-sharing mechanisms exist, but only as a last resort and under defined conditions.

How Rasma Legal Can Support You

Rasma Legal helps businesses navigate every stage of the VARA licensing and compliance journey. Our team has successfully worked with VARA across multiple licensing categories and understands the practical and regulatory requirements for operating in Dubai’s fast-evolving digital or crypto asset market. Whether you are applying for a VARA license or strengthening your ongoing compliance, we provide the strategic guidance and hands-on support you need to build a secure, compliant, and scalable VA business.