The recently announced DME-AUD Academy held its first seminar yesterday at the American University of Dubai (AUD) with more than 400 energy, finance and business professionals in attendance. The seminar which covered Energy Futures Trading is the first in a series of educational sessions aimed at increasing knowledge within the UAE, Gulf region, and the greater Middle East on energy risk management and trading.
The DME - AUD Academy, the first academy of its kind, was developed to become the premier commodity and risk management center in the region, providing potential market participants of the Dubai Mercantile Exchange Limited (DME) with the necessary skills and information to strengthen their ability to trade commodities as well as enhance their knowledge of managing price risk. The seminar offered attendees from the region the ability to participate in three sample modules on physical oil trading, using futures, and technical analysis at a presentation delivered on the campus of the AUD.
Dr. Lance de Masi, AUD's President announced in his introductory remarks that "The DME - AUD Academy is officially open and is well on its way of attaining its goal of educating students and professionals alike in the intricacies of transacting energy futures contracts at the Dubai Mercantile Exchange. AUD's partnership with the DME in the founding of the Academy is an opportunity for education to triumph. The Academy will serve as a shining example of the formidable impact that an institution such as ours can have when it teams with an entity the likes of the Dubai Mercantile Exchange".
Mr. Gary King, Chief Executive of the DME introduced the Exchange, a joint venture between the New York Mercantile Exchange (NYMEX) and Tatweer, a member of Dubai Holding, which recently announced that it will be listing an Oman Crude Oil futures contract. The Exchange regulated by the Dubai Financial Services Authority and located in the Dubai International Financial Center is expected to begin trading during the fourth quarter of 2006.
Mr. King also highlighted the importance of the DME-AUD Academy and said "Apart from designing and organizing a comprehensive range of seminars, the Academy will allow participants to have the ability to obtain Commodity Training Diplomas, to pass Trader Certification Exams, in addition to creating the foundation for a wide audience to trade Oman Crude Oil futures contracts, and other energy commodity contracts on the DME".
The seminar was conducted by Ms. Suzanne Taylor, a qualified lecturer and a long term market practitioner of physical oil trading and risk management, and a Managing Partner of Bright Sparks in training Ltd, a London based consultancy firm specialising in planning and delivering tailored training in the energy markets.
Addressing the audience, Ms. Taylor discussed the fundamentals of the petroleum markets elaborating on crude oil trading, crude oil supply, the geographical distribution of this supply, the demand for oil and its products, the refining capacity versus the refinery throughput, and finally the determinants of oil price.
Ms. Taylor also explained the fundamentals of Exchange traded futures contracts, outlining the clearing mechanism of a futures exchange and its function of providing a medium for risk management, allowing for price transparency and providing supply/pricing flexibility and investment opportunities. She further said "Trading energy futures contracts on the Dubai Mercantile Exchange, with clearing through the NYMEX clearinghouse will afford market participants all the safeguards and standards they would expect when trading oil futures in New York or London."
At the conclusion of this seminar, Mr. King stated "We are encouraged by the overwhelming success of the DME-AUD Academy's introductory session and the cross section of market participants, individual investors and students that came out to listen to Suzanne's remarks." The DME-AUD Academy will be announcing its upcoming schedule of classes shortly.