The Dubai Mercantile Exchange Limited (DME), a joint venture between the New York Mercantile Exchange, Inc (NYMEX) and Tatweer, a member of Dubai Holding, has announced a delay in the launch date of the DME to June 1, 2007. The exchange is due to trade the Middle East's first crude oil contract.
"Launching an international commodity exchange in the Middle East and a new sour crude oil benchmark is unprecedented as well as extremely challenging," the DME said in a statement.
"The regulatory, technical and commercial aspects that need to be conceived, considered and acted upon to ensure that the DME succeeds, are necessarily complex and it is essential that absolutely everything is in place when the exchange goes live," the DME added. The DME had been due to launch on May 1.
Last month, the Dubai Financial Services Authority (DFSA) 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 the New York Mercantile Exchange Inc. (NYMEX), to carry on the Financial Service of Operating a Clearing House in the DIFC.
In February, the DME announced the completion of its state-of-the-art trading floor, located in the DIFC. The two-storey high, 500 square-metre trading floor is the first of its kind in the region. It will bring together a broad range of local, regional and international participants, and is equipped with the latest technology for traders to electronically transact energy futures contracts and manage their risk.
The initial three contracts to be traded on the DME will be the physically delivered Oman Crude Oil Futures Contract, and two financially settled contracts, a Brent-Oman spread contract and a WTI-Oman spread contract.
In addition, DME, ENOC Supply & Trading (LLC) and Emirates Airline are exploring the potential development of a jet fuel futures contract in collaboration with other industry stakeholders with a view to listing the first jet fuel futures contract on the Exchange later in 2007.
“We are especially pleased with the Sultanate of Oman’s historic decision to adopt forward pricing of its crude oil, based on the daily settlement price of the DME’s Oman Crude Oil Futures Contract, and our consensus of agreement with the Sultanate’s Ministry of Finance to acquire a 30% equity stake in the DME," commented Ahmad Sharaf, Chairman of the DME Board of Directors and Senior Vice President, Energy & Healthcare – Tatweer.
"Oman’s confidence and support for the DME, as reflected by these recent announcements and the continuation of Dubai’s role in this regard underscore the true significance and impact the DME is expected to have on the future pricing of Middle East sour crude oil," he added.
.
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy & Cookies
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment