US IRS recognition for DME.
The Dubai Mercantile Exchange Limited (DME) said it has got recognition from the United States Internal Revenue Service (IRS) as a "qualified board or exchange" within the meaning of the Internal Revenue Code.
The United States IRS issued a public ruling (Revenue Ruling 2009-4) in this connection. Qualification under Section 1256 of the US IRS recognizes DME as qualified board or exchange, a statement from the DME said.
Commencing with DME contracts entered into or after on February 1, 2009, the IRS ruling allows US taxpayers to elect to treat the gain or loss recognized with respect to DME contracts as 40 per cent short-term and 60 per cent long-term.
Commenting on the announcement, Ahmad Sharaf, chairman of the DME said the ruling recognises the robust framework put in place 'when we initially established the DME.'
The DME is regulated by the Dubai Financial Services Authority (DFSA) with further regulatory approvals, no objection or legal opinions from 23 other global regulators, and sold 72 memberships to blue chip financial institutions and energy trading firms in its first year of operation, he noted.
'These achievements clearly underline the importance that the Exchange places on maintaining international best practices and standards, and we believe that this latest ruling further reflects the DME's success in this regard," he pointed out.
Thomas Leaver, CEO of the DME said, 'We are currently finalising the migration period which will transition the DME contracts to CME Globex, the world's largest electronic trading platform, which will dramatically increase the exposure of DME contracts to the global trading community.'
'We believe that this recognition from the IRS as a qualified board or exchange, and the related tax benefits to traders domiciled in the US, will further attract new market participants,' he added.- TradeArabia News Service
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|Publication:||TradeArabia (Manama, Bahrain)|
|Date:||Jan 30, 2009|
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