September 08, 2008

DME to launch two new future contracts

Dubai Mercantile Exchange has announced that it is launching two new financially settled contracts for Brent and Oman crude oil. This follows the successful launch of the exchange’s benchmark Oman crude oil futures contract in 2007 amid record volumes and open interest in January 2008.

Dubai Mercantile’s new Brent contract will be cash settled against ICE’s Brent Crude Futures Contract, while its new Oman contract will be cash settled against the DME’s benchmark Oman Crude Oil Futures Contract. In addition to being cleared at the NYMEX Clearinghouse, the new contracts will also be available for block trading, recently introduced by the Dubai Mercantile.

Mr Gary King CEO of Dubai Mercantile said that “We will launch financially settled contracts for Brent crude and Oman crude in the very near future. These two new contracts were designed after extensive consultation with our global customers. 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.”

Dubai Mercantile is the first futures market in the Middle East, backed by the New York Mercantile Exchange and the governments of Oman and Dubai, to launch a physically settled Oman sour crude contract on June 1st 2007 in an effort to provide a futures link to crude supply from the Middle East.

Dubai Mercantile also announced that it will delist its Brent Oman Financial Spread Contract and Oman Financial Spread Contract upon launch of the new contracts.