DFSA Officially Recognises Dubai Mercantile Exchange And NYMEX

by Lorys Charalambous, Tax-News.com, Cyprus

30 April 2007

The Dubai Financial Services Authority (DFSA) has licensed the Dubai Mercantile Exchange Limited (DME) as an Authorised Market Institution (AMI) in the Dubai International Financial Centre (DIFC).

The DFSA has also granted the status of Recognised Body to New York Mercantile Exchange Inc. (NYMEX) to carry on the Financial Service of Operating a Clearing House in the DIFC. On the 17th of April 2006, NYMEX and Commodity Exchange Inc. (COMEX) were each granted the status of Recognised Bodies within the DIFC to carry out the Financial Service of Operating an Exchange.

DFSA’s Chief Executive, David Knott commented:

“Today’s licensing approvals are an important last stage towards the launching of DME’s operations within the DIFC.

"The DFSA has worked closely with DME over many months to ensure that the new exchange will operate an orderly, fair and efficient market meeting both domestic and international expectations. The DME model contains a number of innovative and sophisticated features that have required careful consideration from both commercial and regulatory perspectives."

"We believe that the DME is well placed to develop a world class market; to contribute to the efficiency of commodities trading and pricing throughout our region; and to further enhance the DIFC’s standing as a progressive, reputable and well regulated financial centre."

"We will continue our co-operation with USA regulators with a view to expediting regulatory approvals in that country, ahead of DME’s proposed 1 June 2007 launch.”

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