Initiative to boost DME efforts in creating a more efficient and cost-effective trading environment for customers
Dubai, July 15, 2015 - Dubai Mercantile Exchange (DME) announced today that Bank of China - Singapore Branch - has been approved to issue Letters of Credit (LCs) for trading on DME directly from Singapore. The approval reflects DME and Bank of China’s joint commitment to facilitate the trading activities of their mutual customers in Asia. This latest initiative comes as a result of the MoU signed in Dubai back in October 2014 between DME and Bank of China to offer a more extensive range of finance solutions to mutual customers.
This latest development reflects DME’s ongoing efforts to create a more efficient and cost-effective trading environment around the Exchange by having a diverse roster of international banks that are authorized to issue LCs directly from Singapore to guarantee deliveries of Oman Blend crude oil through the DME.
“Creating an efficient financing framework for our Asian customers is a major priority for the DME and this focus has been instrumental in driving our sustained growth in recent times,” said Owain Johnson, Managing Director, DME. “Signing the MoU with Bank of China was a landmark for the exchange and I am pleased that it has translated into positive action so quickly.”
Ms Guo Ningning from Bank of China Singapore Branch said, “We are pleased to be participating in this new initiative to provide more convenience to our clients who will benefit from the direct issuance of LCs from Singapore. Our participation is in line with our efforts to deliver greater efficiencies for our clients to trade the successful DME Oman crude contract and take delivery in the global energy market while expanding the scope of our commodity finance services.”