ADGM Brokerage License and ADGM Matched Principal Trading License

Category 2A

Brokerage, Matched Principal Trading & Execution - Legally Authorised. Expertly Structured.

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The Category 3A Financial Services Licence issued by the Abu Dhabi Global Market (ADGM) allows companies to conduct business as brokerage and matched principal trading firms under the supervision of the Financial Services Regulatory Authority (FSRA).

A solid regulatory infrastructure offered by the ADGM Brokerage License enables firms to carry out business in one or multiple categories, such as being a securities broker, a matched principal trading firm, and an execution venue within the Abu Dhabi Global Market. Such a licence, under the supervision of the Financial Services Regulatory Authority (FSRA), enables firms to conduct regulated investment dealing while maintaining regulatory controls over market risks.

Arranged as an ADGM Category 3A License, this authorisation has been particularly created for brokerage and trading businesses that manage transactions on account of their clients, either as agents or as matched principals, without taking substantial proprietary risks. Finjuris helps its clients across all stages of FSRA brokerage authorisation, including strategy, scoping, and approval, as well as any post-licensing compliance requirements.

Finjuris assists clients in understanding the ADGM regulatory framework and obtaining a Category 3A Financial Services Licence.

What Is an ADGM Category 3A Licence?

An ADGM Category 3A Licence allows the firm to engage in regulated investment activities that are specifically related to securities dealing, brokerage, and principal execution in a matched principal capacity, which means the firm will not take significant proprietary risks when executing trades on behalf of clients. This licence is specifically designed for brokerage houses that execute trades on behalf of their clients and work as agents in investment transactions.

Category 3A is intended for firms that:

  • Act as brokers or dealers for clients
  • Execute trades on an agency or matched principal basis
  • Facilitate order flow and market access
  • Provide execution services in securities, derivatives, or foreign exchange

A Category 3A firm is not allowed to carry out banking or credit functions (which are classified as Category 1 and Category 2), but it can be licensed to carry out additional activities related to its category (3B, 3C, or 4) with the approval of the FSRA. This makes the licence particularly suitable for brokerage houses, trading firms, and execution-focused platforms seeking regulatory credibility without the capital burden of a banking licence.

Permitted Activities for Category 3A

The Category 3A license may permit one or more of the following controlled activities:

Dealing in Investments as Matched Principal - executing orders on behalf of clients without risk of propriety

This activity allows firms to act as brokers, executing trades on behalf of clients and transmitting orders to markets or counterparties. The firm does not take ownership of the investment and does not assume market risk beyond execution-related obligations.

This model is commonly used by:

Securities brokerage firms

Institutional execution desks

Online and platform-based brokers

Dealing in Investments as Agent - broker/dealer services for clients

The ADGM Matched Principal Trading License allows a firm to interpose itself between a buyer and seller in a transaction, buying and selling the investment back-to-back so that market risk is neutralised.

Key characteristics of matched principal trading include:

No significant proprietary risk exposure

Trades are economically offset

The firm facilitates execution rather than speculates

This structure is widely used in professional markets to enhance liquidity and execution efficiency while maintaining regulatory safeguards.

Forex Brokerage and other execution activities

An ADGM forex brokerage license may be included within a Category 3A authorisation, enabling firms to execute foreign exchange trades for clients on an agency or matched principal basis. As with other activities, forex brokerage must be conducted in accordance with FSRA conduct, capital, and risk management rules.

These activities are appropriate for firms that operate in agency execution, brokerage, and order flow facilitation.

Regulatory Framework & Capital Requirements

A Category 3A applicant must satisfy the FSRA’s prudential, governance, and capital requirements, including:

Base capital: Minimum of USD 500,000 (dependent on business model and risk profile)

Risk-based capital ratios: Including minimum Common Equity Tier 1 and Tier 1 capital requirements based on risk assessment

Effective governance structure and risk management practices

Ongoing conduct and AML compliance programs

The FSRA will determine the actual capital requirements based on the firm’s business activity scope and risk profile - additional capital may be required.

ADGM Investment Dealing License: Who Is It For?

The ADGM investment dealing license under Category 3A is well-suited to firms such as:

01

Securities brokerage houses

02

Proprietary trading firms operating on a matched basis

03

Institutional execution platforms

03

Forex and multi-asset brokers

04

Trading firms facilitating order flow

For these firms, ADGM offers a credible regulatory environment with international recognition, making it an attractive base for regional and cross-border operations.

01

A directly applicable common law framework, ensuring legal certainty

02

An Independent Regulator Committed to Global Best Practices

03

English language regulation, supervision, and courts

03

A highly developed financial infrastructure of institutions and service organizations

04

Strong regional and international credibility

These features have the following implications: For firms seeking to obtain a trading firm license in ADGM, they will benefit from the degree of confidence, predictability, and efficiency.

Why Choose ADGM for Brokerage and Trading Firms?

ADGM has established itself as a global financial centre, especially with regard to capital markets. Some of the benefits that an organization stands to gain by choosing ADGM are:

ADGM Investment Dealing License: Who Is It For?

The ADGM investment dealing license under Category 3A is well-suited to firms such as:

Securities brokerage houses

Proprietary trading firms operating on a matched basis

Institutional execution platforms

Forex and multi-asset brokers

Trading firms facilitating order flow

For these firms, ADGM offers a credible regulatory environment with international recognition, making it an attractive base for regional and cross-border operations.

Why Choose ADGM for Brokerage and Trading Firms?

ADGM has established itself as a global financial centre, especially with regard to capital markets. Some of the benefits that an organization stands to gain by choosing ADGM are:

A directly applicable common law framework, ensuring legal certainty

An Independent Regulator Committed to Global Best Practices

English language regulation, supervision, and courts

A highly developed financial infrastructure of institutions and service organizations

Strong regional and international credibility

These features have the following implications: For firms seeking to obtain a trading firm license in ADGM, they will benefit from the degree of confidence, predictability, and efficiency.

Application Process for ADGM Brokerage License

Step 1: Regulatory Feasibility Assessment

Before making their application, firms should consider:
  • Whether Category 3A is appropriate licence
  • What controlled activities are needed
  • Capital and governance readiness

Finjuris undertakes thorough scope exercises to match applications with FSRA expectations at the outset.

Step 2: Preparation of FSRA Application

The application package usually contains:
  • Business plan
  • Revenue model
  • Description of brokerage and trading activities.
  • Risk management and compliance manuals
  • AML/CFT
  • Details of systems, controls, and technology
  • Shareholders and top management profiles

Clear, well-structured documentation is essential for a good review process.

Step 3: FSRA Review and Engagement

During the review phase, the FSRA may:
  • Request additional information or clarifications
  • Conduct interviews with senior management
  • Assess operational readiness and systems

This process is iterative, and also, the regulation necessitates engagement.

Step 4: Licence Grant and Ongoing Supervision

Once authorised, the firm may commence regulated activities under the ADGM Brokerage License. Ongoing obligations include:
  • Periodic regulatory reporting
  • Capital adequacy monitoring
  • Compliance reviews
  • Transaction and conduct oversight

How Finjuris Supports You

Finjuris offers tailored advisory services for Category 3A applicants - including:

1

Regulatory strategy and licence scoping

2

Preparation of FSRA-ready documentation

3

Governance and compliance structuring

4

Application submission and follow-through

5

Post-licence compliance guidance

We ensure your application is complete, compliant, and structured for success.

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