Broker To Broker Agreement Template for United Arab Emirates

The Broker to Broker Agreement is essential for establishing formal relationships between licensed brokerage firms operating in the UAE financial markets. This document is typically used when two brokers wish to collaborate on trading activities, share clients, or provide complementary services while maintaining compliance with UAE federal laws and SCA regulations. The agreement encompasses crucial elements such as commission sharing structures, regulatory compliance requirements, risk management protocols, and operational procedures. It is particularly important in the UAE context where specific regulatory requirements govern brokerage activities, including licensing obligations, anti-money laundering compliance, and market conduct rules. The document serves as a foundational framework for ensuring clear understanding of roles, responsibilities, and risk allocation between cooperating brokers.

1. Parties: Identification of the participating brokers, including their legal names, license numbers, and registered addresses

2. Background: Context of the agreement and brief description of each broker's business and authorities

3. Definitions: Key terms used throughout the agreement, including regulatory and market-specific terminology

4. Scope of Services: Detailed description of the services to be provided between brokers, including trading arrangements and client referrals

5. Regulatory Compliance: Obligations to comply with UAE regulations, including SCA requirements and anti-money laundering provisions

6. Representations and Warranties: Each party's confirmations regarding their authority, licenses, and capacity to perform

7. Commission Structure: Details of commission sharing, payment terms, and calculation methods

8. Client Relations: Protocols for handling client accounts, communications, and responsibilities

9. Confidentiality: Provisions for protecting confidential information and trade secrets

10. Risk Management: Procedures for managing trading risks and maintaining appropriate controls

11. Term and Termination: Duration of the agreement and circumstances for termination

12. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law

13. General Provisions: Standard clauses including notices, amendments, and assignment rights