The Dubai Financial Services Authority (DFSA) announced today that the Board of Trade of the City of Chicago, Inc. (CBOT), has been granted the status of Recognised Body within the Dubai International Financial Centre (DIFC).
David Knott, Chief Executive of the DFSA, said: “This recognition will enable the Chicago Board of Trade to provide direct access to its commodities future markets in the United States by authorised customers operating within the DIFC.”
Both CBOT and the Chicago Mercantile Exchange Inc. (CME) are wholly owned subsidiaries of CME Group Inc. CME was granted Recognised Body status by the DFSA in December 2007.
The Dubai Financial Services Authority (DFSA) is the sole independent regulator of all financial and ancillary services conducted through the Dubai International Financial Centre (DIFC), a purpose-built financial free zone in Dubai. The DFSA’s regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange.
David Knott was appointed Chief Executive of the DFSA on 1 June, 2005. He is a former Chairman of the Australian Securities and Investments Commission (ASIC) and was Chairman of the Technical Committee of the International Organisation of Securities Commissions (IOSCO). Other positions previously held by him include COO of the Australian Prudential Regulation Authority; CEO of Commonwealth Funds Management; CEO of the Australian Financial Institutions Commission; and Director of the Australian Crime Commission.
The Board of Trade of the City of Chicago, Inc. (CBOT), established in 1848, is a leading futures and futures-options exchange. More than 3,600 CBOT member/stockholders trade 50 different futures and options products at the CBOT by open auction and electronically. Volume at the Exchange in 2006 surpassed 805 million contracts, the highest yearly total recorded in its history.
In its early history, the CBOT traded only agricultural commodities such as corn, wheat, oats and soybeans. Futures contracts at the Exchange evolved over the years to include non-storable agricultural commodities and non-agricultural products. In October 2005, the CBOT marked the 30th anniversary of the Exchange's first financial futures contract, based on Government National Mortgage Association mortgage-backed certificates. Since that introduction, futures trading has been initiated in many financial instruments, including U.S. Treasury bonds and notes, 30-Day Federal Funds, stock indexes, and swaps etc.
A Recognised Body is an exchange, clearing house or settlement facility that operates in or from the DIFC without having a physical presence in the DIFC. A Recognised Body usually already operates in a jurisdiction located outside the DIFC. For further details please view http://www.dfsa.ae/Pages/DoingBusinesswithDFSA/BecomingRecognised/RecognisedBody/RecognisedBody.aspx
