How to become a Primary Dealer?

Home/How to become a Primary Dealer?

The IILM Primary Dealers play a critical infrastructure role by providing a pre-agreed minimum commitment to all the IILM Short-Term Sukūk issuances, in line with and up to the renewable term of their Primary Dealership Agreement.

Key benefits for becoming a Primary Dealer:

Further showcase the Primary Dealer’s leading Global Markets and Islamic Capital Markets capabilities by contributing to the development of a critical tool to accelerate the development and the stability of Islamic Banking & Finance

Entitlement to the non-competitive bids and financial incentive scheme based on performance and minimum commitment

Primary Dealers have exclusive access to the IILM Programme which has the following features:

Wide Sharī’ah acceptance, appealing a broad & cross-border audience;

Effective cross-border liquidity instrument leveraged by Global & Regional Banks; and

Only Sharī’ah-compliant, supra-sovereign, short-term, cross-border, USD tradable money market instrument with Specific & Preferential Regulatory + Risk-Weighted + HQLA treatment from Members and beyond

Primary Dealership Eligibility Criteria:

Ability to distribute to a broad client base (regional/global)

Treasury front & back-office Dealership capabilities

Min. Tier 1 capital of USD 150 Million (or equivalent)

Business Plan developed in collaboration with the IILM

Possession of all required licenses & authorizations

KYC/AML/CTF compliance in line with the Agreement

No objection from prudential regulator or the IILM member(s)