DME contracts to begin trading on CME Globex

Dubai: CME Group, one of the largest exchanges in the world and the Dubai Mercantile Exchange (DME), the international energy futures and commodities exchange based in Dubai, announced yesterday that DME's contracts will start trading on the CME Globex platform in the first quarter of 2009.

The trading will be subject to final DME board approval of the definitive agreement.

The CME Globex platform offers virtually round the clock access to the broadest array of derivatives products in every major asset class in more than 85 countries and territories worldwide.

The transition of the DME Oman Crude Oil Futures Contract (OQ) to CME Globex enables the world's three crude oil benchmark products to trade on the same platform.

Listing the DME Oman Crude Oil Futures Contract and the DME Oman Crude Oil Financial Contract (ZG) on CME, Globex will further increase opportunities for improved risk management by Asian refiners through sophisticated hedging strategies, as well as creating arbitrage opportunities and other advanced trading strategies for traders around the world.

Mideast links

"The addition of DME contracts onto CME Globex extends the wide range of energy products available to our global customer base and further strengthens our links with the Middle East," said CME Group Executive Chairman Terry Duffy.

Although the global financial turmoil had impacted the volume of trading and the participation levels of financial institutions in the oil derivatives market, DME CEO Thomas Lever said he expected the listing on CME will boost the volumes. "The transition to CME Globex marks an important milestone in this second phase of growth for the DME. In the first year of trading we saw more than 400 million barrels traded through the DME. We expect a significant boost in our volumes next year," Lever told Gulf News on Monday.

"We intend to work closely with our partners the CME Group, and we are confident that this cooperation will help to build global visibility for the DME Oman Crude Oil Futures Contract through round the clock availability of the CME Globex trading platform," said Ahmad Sharaf, Chairman, DME.

The DME Oman Crude Oil Futures Contract is increasingly recognised as a global benchmark. "The growing stature of the DME Oman Crude Oil Futures Contract, particularly in the Far East, makes it an attractive addition for CME Group customers wishing to augment their existing trading strategies," said Craig Donohue, CME Group CEO.