DME Oman-linked swap, option contracts set to be launched by CME Group

DUBAI — The Dubai Mercantile Exchange, or DME, confirmed the upcoming launch of a suite of DME Oman-linked swap and option contracts in early December.

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Published: Mon 29 Nov 2010, 10:52 PM

Last updated: Mon 6 Apr 2015, 2:06 AM

The contracts will be listed by the CME Group, which is a core shareholder of the DME, and the world’s largest derivatives exchange.

The six futures contracts that will be available for clearing on the CME ClearPort are DME Oman Crude Oil Swap Futures, DME Oman Crude Oil vs ICE Brent Swap Futures, DME Oman Crude Oil Average Price Option, Singapore MOGAS 92 Unleaded (Platts) vs DME Oman Crude Oil Swap Futures, Singapore Gasoil (Platts) vs DME Oman Crude Oil Swap Futures and DME Oman Crude Oil BALMO Swap Futures.

The contracts, which will be listed for trading on Sunday, December 5 for trade date Monday, December 6, are subject to the rules and regulations of the New York Mercantile Exchange and the Chicago Mercantile Exchange Inc.

The introduction of a full suite of DME Oman-related risk management tools will help industry participants to manage price risk more effectively in the Middle East and Asia Pacific energy markets. The DME will be holding seminars in Tokyo and Singapore on December 7 and 9, respectively, to update industry participants on the new contracts and other related developments at the exchange.

“This marks an important step forward for the DME and builds on the steady progress that we have been making since our launch just three years ago. These new contracts will offer our customers greater choice in addressing their risk management needs by providing additional flexibility in hedging and trading. It will also further consolidate the DME Oman contract as the third global crude oil pricing benchmark, alongside WTI and Brent,” DME Chairman Ahmad Sharaf said.

“The listing by CME Group will bring these contracts to the market in an expeditious fashion, supported by a robust regulatory framework, state of the art trading facilities, and effective counterparty clearing,” DME CEO Thomas Leaver said.

“Responding to industry demand, the DME remains committed to providing our customers with additional tools for their risk management strategies. We are confident that producers and refiners in East of Suez crude oil markets will welcome the introduction of these new products.”

The DME recently reported a positive uplift of 52 per cent in trading volumes over the last three months as compared to same period in 2009.

The DME was launched in June 2007 with the goal of bringing fair and transparent price discovery and efficient risk management to the East of Suez.

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