Trading & asset management
Proprietary trading desks
Hedge funds
Hedge funds
Proprietary trading desks
Deliver professional investment management and trading operations in DIFC, serving institutional and high-net-worth clients without taking custody of client assets.
The firm serves institutional and high-net-worth clients without holding client assets, under a secure, internationally recognised framework.
Focused on investment and trading services
The DIFC category 2 license allows firms to operate as regulated investment managers or trading companies without directly handling client assets. Firms can manage investment portfolios, execute proprietary trading strategies, or provide discretionary fund management under DFSA supervision.
- This license is most commonly used by:
- Asset management firms
- Investment advisory firms with discretionary management
- Hedge funds and fund managers
- Proprietary trading desks
- Wealth managers and portfolio managers
What activities does it cover?
Conduct proprietary trading using the firm’s capital
Provide market access and execution services
Offer investment strategies and portfolio structuring to professional clients
Manage assets and client portfolios on a discretionary basis
Arrange and execute investment transactions as an agent
Regulatory requirements
- Minimum paid-up capital of USD 500,000
- Full DFSA authorisation required
- Ongoing compliance reporting and governance standards
- AML and KYC frameworks must be implemented
- Annual audits and risk assessments required
Category 2 license enables firms to operate at the highest international standards while benefitting from DIFC’s world-class infrastructure and regulatory reliability.
This license does not permit the custody of client funds or deposit-taking. Those activities require a category 1 license.
Why choose DIFC for banking operations?
Institutional Access
Full access to institutional investors and global markets
Legal Certainty
Legal certainty through a common law framework
Strategic Proximity
Proximity to regional private equity, venture capital, and banking ecosystems
Tax
foreign ownership
Reputational Credibility
Reputational credibility through DFSA licensing
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