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DME to launch new oil contracts.

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The Dubai Mercantile Exchange (DME) yesterday announced that it will launch two new financially settled contracts for Brent and Oman crude oil in the very near future, subject to obtaining the required regulatory approvals. This follows the successful launch of the Exchange's benchmark Oman crude oil futures contract last year amid record volumes and open interest last month.

The move is widely seen as an attempt to build further trading interest with Wall Street. Speaking in London to an audience of leading industry participants at the first in a series of international seminars held by the DME, chief executive Gary King unveiled the terms and conditions of the DME's new Brent crude oil financial contract and Oman crude oil financial contract. Both of these new futures contracts will be traded electronically on DME Direct, the Exchange's electronic trading system.

A"When the contracts are launched, traders will have the essential tools for making a commonly traded over-the-counter transaction, the spread between two sweet and sour crude oil benchmarks, on DME Direct,A" said King. A"We are confident that these new contracts will prove as successful as our flagship physically delivered Oman crude oil futures contract and greatly add to overall liquidity and price transparency.A"

The DME's new Brent contract will be cash-settled against the Brent crude futures contract, while its new Oman contract will be cash-settled against the DME's benchmark Oman crude oil futures contract. The DME is a joint venture between the New York Mercantile Exchange and the Dubai and Omani governments.

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Publication:7 Days (Dubai, United Arab Emirates)
Date:Feb 20, 2008
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