dubai mercantile exchange revises launch program

Published April 19th, 2007 - 10:15 GMT

The Dubai Mercantile Exchange Limited (DME), a joint venture between the New York Mercantile Exchange, Inc (NYMEX) and Tatweer, a member of Dubai Holding, today announced that it has decided to revise the launch date of the DME to June 1, 2007, subject to regulatory approvals of its clearing arrangement.

Launching an international commodity exchange in the Middle East and a new sour crude oil benchmark is unprecedented as well as extremely challenging. 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 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 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 June 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.

For further information, please contact:

Financial Dynamics:

GCC:              John Hobday          +971 50 464 8706 /

Manash Bhuyan             +971 50 841 9631 /

London :         Alya Shakir               +44 (0)20 7269 7165/

Seán Galvin  +44 7788 568245 /

New York: Scot Hoffman            +1 212 850 5617 /

Asia:  Julie Wang

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