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Posted on Jul 08, 2008.
As part of the global exchange community, the DME supports the recent movements by the CFTC and US Congress to address transparency in the international electronic energy and commodity markets. DME is a leading international commodities exchange in the Middle East, providing transparent price discovery on the DME Oman Crude Oil Futures Contract, which is becoming a global benchmark for Middle Eastern sour crude. Regulated by the Dubai Financial Services Authority (DFSA), an independent, internationally recognized regulatory body, with further regulatory approvals, no objection or legal opinions from 23 other regulators, the DME brings global standards in commodity trading to the world's premier hydrocarbon region.
The DME does not list a WTI Financial Futures contract, although it received a no-action letter from the CFTC to allow DME to list such a contract, and NYMEX has received an amendment to its Clearing Order enabling it to clear such positions.
In early June, the DME stated that if it were to launch a WTI contract, DME would implement comparable position limits to those that NYMEX currently has in place on its Light Sweet (WTI) Crude Oil Futures contract. Further as part of the NYMEX Clearing Order, large trader reporting to the CFTC and NYMEX would be required. The amendments to DME's No-Action Letter from the CFTC announced yesterday by the CFTC clarified these reporting requirements.
DME is committed to monitoring and maintaining orderly markets as prescribed under the terms of the Authorized Market Institution license issued to it by the Dubai Financial Services Authority and believes that the actions taken by the CFTC further complement DME's ongoing commitment to the marketplace. Customers and traders look to the DME as a truly international exchange with world class standards. DME continues its drive to exceed the high standards that earned customers' trust in the first year of trading.