Document background
The Margin Lending Agreement is a crucial document used when financial institutions in the UAE provide credit facilities to clients for securities trading purposes. This agreement is essential for establishing the legal framework for margin trading activities, ensuring compliance with UAE Central Bank regulations and Securities and Commodities Authority (SCA) requirements. The document details the terms of the lending facility, including margin requirements, collateral arrangements, risk management procedures, and enforcement mechanisms. It incorporates specific UAE regulatory requirements such as prescribed margin ratios, risk disclosures, and customer protection measures. The agreement is particularly important given the increasing sophistication of the UAE financial markets and the need for clear documentation of margin lending arrangements that comply with both federal laws and specific financial free zone regulations.
