The Dubai Mercantile Exchange Limited (DME) announced today that it has received five further letters of 'no objection' from a number of overseas regulators, allowing additional traders from around the world to access the DME via DME Direct™, the Exchange's state-of-the art trading platform.
The latest no objections were received from Estonia's Finantsinspektsioon, Guernsey's Financial Services Commission, the Commission de Surveillance du Secteur Financier (CSSF) of Luxembourg, and the Financial Supervision Authority (PFSA) of Poland. In addition, the Netherlands's Ministry of Finance has granted the DME dispensation of exchange recognition in the Netherlands
With these, the DME has now received approvals and letters of 'no objection' from 18 overseas world-class regulators. These include jurisdictions with some of the world's largest trading communities including numerous firms that are either seeking access to or already actively engaged in trading on the DME. Regulatory approvals from overseas jurisdictions are essential as the DME looks to attract even broader participation from regional and international energy traders.
In addition to the jurisdictions announced today, the DME has also received clearance from regulators in Finland, Ireland, Japan, the Kingdom of Bahrain, Lebanon, New Zealand, People's Republic of China, Republic of Korea, Singapore, the Sultanate of Oman, Switzerland, United States of America and the United Arab Emirates.
Commenting on the approvals, Gary King, Chief Executive Officer of the DME said: "With the successful launch of the Exchange and growing trading volumes, we are delighted to receive further recognitions from these key jurisdictions. This is an exciting time for the DME and our customers from around the world and we will continue to work with them and their regulators to ensure all customers can access the Exchange and our unique product offering. Since our launch on June 1, we have already seen strong volumes and expect these to grow even further in the weeks ahead. Our results to date have exceeded expectations and we continue to be gratified by the positive feedback we are receiving from buyers and consumers of Middle East crude, who have been looking for ways to more effectively manage their risk."
To date, the DME has admitted more than 60 Members and 20 Market Makers. Additional members are being approved on an ongoing basis as interest continues to build and the DME reports solid trading volumes and exchange wide open interest.
Launched on June 1, 2007, the DME currently list three contracts for trading: The physically delivered Oman Crude Oil Futures Contract and two financially settled futures contracts, the Brent-Oman Spread Contract and a WTI-Oman Spread Contract. The Oman Crude Oil Futures Contract is the Middle East's first and only physically-backed energy futures contract, with deliverability expected to provide true price convergence between the cash markets and the physical markets.
Furthermore, the Exchange is developing additional products, including the world's first jet fuel futures contract, which it expects to list on the DME during 2007.