dubai mercantile exchange receives further regulatory approvals from the middle east, europe and asia pacific

Published April 4th, 2007 - 12:08 GMT

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 it has received no objections from the Sultanate of Oman’s Capital Market Authority, the Financial Services Regulatory Authorityof Ireland and the New Zealand Securities Commission and a regulatory authorisation from the Swiss Federal Banking Commission.

The regulatory approvals include the DME’s first from Middle Eastern and European jurisdictions and further approval from the Asia-Pacific region. They follow last month’s ‘no objection’ letter from International Enterprise Singapore and ‘no restriction to provide direct access’ from Japan’s Ministry of International Trade and Industry.

Such approvals from overseas jurisdictions are essential as the DME seeks to attract participation from a wide range of international as well as local and regional energy traders.  The DME’s clients in the Sultanate of Oman, Switzerland, Ireland and New Zealand will be able to access the DME Direct TM electronic trading platform when the Exchange launches on May 1 2007, subject to the Dubai Financial Services Authority (DFSA) granting the DME a license to operate as an Authorised Market Institution. The authorisations also allow the DME to admit entities from these jurisdictions as members, providing they meet the relevant DME criteria.

Welcoming these decisions, Gary King, Chief Executive of the DME, said: “This is yet another important milestone for us as we continue to progress towards the historic launch of the Middle East’s first energy futures exchange next month.
“These approvals demonstrate our global reach and are the latest of many requested from regulators around the world to enable our customers to trade on the Exchange from day one. The regulatory approval process is also well advanced with the DFSA in Dubai,” he added.

Based in the Dubai International Finance Centre (DIFC), the DME recently announced other significant progress including the completion of its two-storey high, 500 square-metre, state-of-the-art trading floor which is located in the DIFC, and receipt of a high volume of applications for all categories of membership.

The initial three contracts to be traded on the DME when it launches will be the physically delivered Oman Crude Oil Futures Contract and two financially settled futures contracts, the Brent-Oman Spread Contract and a WTI-Oman Spread Contract.

The DME, ENOC Supply & Trading (LLC) and Emirates Airline are currently 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 at a later date in 2007.

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 DFSA and the licensing of the DME as an Authorised Market Institution to operate as an exchange.

 


The Dubai Mercantile Exchange Limited’s (DME) establishment of an exchange inside the Dubai International Finance Centre (DIFC) is subject to regulatory approval from the Dubai Financial Services Authority (DFSA) to be licensed as an Authorised Market Institution to operate as an exchange inside the DIFC.  Furthermore, all clearing and settlement services to be provided by the New York Mercantile Exchange to DME are subject to the New York Mercantile Exchange becoming recognised by the DFSA to operate a remote clearinghouse in the DIFC and subject to the review and / or approval of the Commodity Futures Trading Commission. Until the above regulatory approvals have been granted, no trading on the DME will be permitted and no person will be admitted as a member of the DME.
About the Dubai Mercantile Exchange
The Dubai Mercantile Exchange Limited (DME), a joint venture between the New York Mercantile Exchange, Inc. (NYMEX) and Tatweer, aims to become the premier commodity and energy futures exchange in the Middle East, providing a financially secure, well-regulated and transparent trading environment.
The Exchange will initially develop and trade an Oman Crude Oil Futures Contract and two financially settled futures contracts, the Brent-Oman Spread Contract and a WTI-Oman Spread Contract. This will address a growing market need for price discovery of Middle East Sour Crude Oil while simultaneously bridging the time zone gap between Europe and Asia by providing for the trading of energy futures, options and other products.
The DME will be a fully electronic exchange. However, in a unique concept, it will also bring together a community of traders that will operate from   individual trading stations on the Exchange’s floor, which will be located within the Dubai International Financial Centre (DIFC), the region’s leading financial services centre.

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.

 

dubai mercantile exchange receives further regulatory approvals from the middle east, europe and asia pacific

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 it has received no objections from the Sultanate of Oman’s Capital Market Authority, the Financial Services Regulatory Authorityof Ireland and the New Zealand Securities Commission and a regulatory authorisation from the Swiss Federal Banking Commission.

The regulatory approvals include the DME’s first from Middle Eastern and European jurisdictions and further approval from the Asia-Pacific region. They follow last month’s ‘no objection’ letter from International Enterprise Singapore and ‘no restriction to provide direct access’ from Japan’s Ministry of International Trade and Industry.

Such approvals from overseas jurisdictions are essential as the DME seeks to attract participation from a wide range of international as well as local and regional energy traders.  The DME’s clients in the Sultanate of Oman, Switzerland, Ireland and New Zealand will be able to access the DME Direct TM electronic trading platform when the Exchange launches on May 1 2007, subject to the Dubai Financial Services Authority (DFSA) granting the DME a license to operate as an Authorised Market Institution. The authorisations also allow the DME to admit entities from these jurisdictions as members, providing they meet the relevant DME criteria.

Welcoming these decisions, Gary King, Chief Executive of the DME, said: “This is yet another important milestone for us as we continue to progress towards the historic launch of the Middle East’s first energy futures exchange next month.
“These approvals demonstrate our global reach and are the latest of many requested from regulators around the world to enable our customers to trade on the Exchange from day one. The regulatory approval process is also well advanced with the DFSA in Dubai,” he added.

Based in the Dubai International Finance Centre (DIFC), the DME recently announced other significant progress including the completion of its two-storey high, 500 square-metre, state-of-the-art trading floor which is located in the DIFC, and receipt of a high volume of applications for all categories of membership.

The initial three contracts to be traded on the DME when it launches will be the physically delivered Oman Crude Oil Futures Contract and two financially settled futures contracts, the Brent-Oman Spread Contract and a WTI-Oman Spread Contract.

The DME, ENOC Supply & Trading (LLC) and Emirates Airline are currently 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 at a later date in 2007.

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 DFSA and the licensing of the DME as an Authorised Market Institution to operate as an exchange.

 


The Dubai Mercantile Exchange Limited’s (DME) establishment of an exchange inside the Dubai International Finance Centre (DIFC) is subject to regulatory approval from the Dubai Financial Services Authority (DFSA) to be licensed as an Authorised Market Institution to operate as an exchange inside the DIFC.  Furthermore, all clearing and settlement services to be provided by the New York Mercantile Exchange to DME are subject to the New York Mercantile Exchange becoming recognised by the DFSA to operate a remote clearinghouse in the DIFC and subject to the review and / or approval of the Commodity Futures Trading Commission. Until the above regulatory approvals have been granted, no trading on the DME will be permitted and no person will be admitted as a member of the DME.
About the Dubai Mercantile Exchange
The Dubai Mercantile Exchange Limited (DME), a joint venture between the New York Mercantile Exchange, Inc. (NYMEX) and Tatweer, aims to become the premier commodity and energy futures exchange in the Middle East, providing a financially secure, well-regulated and transparent trading environment.
The Exchange will initially develop and trade an Oman Crude Oil Futures Contract and two financially settled futures contracts, the Brent-Oman Spread Contract and a WTI-Oman Spread Contract. This will address a growing market need for price discovery of Middle East Sour Crude Oil while simultaneously bridging the time zone gap between Europe and Asia by providing for the trading of energy futures, options and other products.
The DME will be a fully electronic exchange. However, in a unique concept, it will also bring together a community of traders that will operate from   individual trading stations on the Exchange’s floor, which will be located within the Dubai International Financial Centre (DIFC), the region’s leading financial services centre.

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.

 

 

 


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