The Dubai Mercantile Exchange Limited (DME), a joint venture between Tatweer, a member of Dubai Holding, and the New York Mercantile Exchange Inc., (NYMEX), announced today that its Membership Committee has approved in principle 28 members to date, with more being processed as the DME prepares for launch on May 1, 2007.
Seventeen of the DME’s members are Off-Floor Members and eleven are Clearing Members, the Exchange reported, with traders from North America, Europe, the Middle East and Asia representing a truly global membership. Applications continue to be submitted from all regions but the DME has closed its oversubscribed Market Maker programme and is now working with those firms on connectivity to DME’s electronic trading platform, DME Direct TM.
The DME also revealed that, due to the high level of interest, prices of the remaining Off-Floor Memberships will be increased after the launch. All potential applicants are now required to submit a completed application and application fee by April 20 to qualify for consideration for membership at the published rate.
CEO Gary King commented: “The success of our Market Maker programme and the high level of interest in membership are further demonstrations of the global market’s growing support for the DME. With the recent successful testing of DME Direct TM and further regulatory approvals from international jurisdictions, we are ensuring that all elements are in place for a successful launch. We look forward to delivering outstanding service and excellent benefits to our members throughout the world.”
The establishment of an exchange inside the DIFC and the associated clearing and settlement services to be provided by the NYMEX Clearinghouse are subject to regulatory approval from the Dubai Financial Services Authority and the licensing of the DME as an Authorised Market Institution to operate as an exchange.
About the Dubai Mercantile Exchange
The Dubai Mercantile Exchange Limited (DME), a joint venture between Tatweer, a member of Dubai Holding, and the New York Mercantile Exchange, Inc. (NYMEX), will become the Middle East’s first commodities and energy futures exchange when it launches on May 1, 2007.
Located in the Dubai International Financial Centre (DIFC), the region’s financial services hub, the DME will bridge the time zone gap between Europe, Asia and North America and provide a financially secure, well-regulated and transparent environment for the trading of energy futures, options and other products. Initially, the three contracts to be traded on the Exchange will be the physically delivered Oman Crude Oil Futures Contract (OQ), and two financially settled contracts, a Brent-Oman spread contract ( QN) and a WTI-Oman spread contract ( QW).
Powered by DME Direct TM, its state-of-the-art trading platform, the DME will be a fully electronic exchange. It will also bring together a community of traders operating from stations on its trading floor. The DME will be regulated by the Dubai Financial Services Authority (DFSA), a world class, independent regulator, and all trades executed on the Exchange will be cleared through, and guaranteed by, NYMEX’s AA+ rated clearinghouse.
Further information about the Dubai Mercantile Exchange is available on the DME website at http://www.dubaimerc.com
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