Modest start for DME
Posted: 18 June 2007
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Dubai Mercantile Exchange could launch an initial public offering if its Middle East crude oil futures contract is a success. "I would see our exchange to be quite a large company shortly, once the crude contract takes off" and a planned jet fuel contract comes on line, said DME chairman Ahmad Sharaf.
He did not give any estimation of future earnings or growth projections for the new exchange, which is jointly owned by the Dubai and Oman governments and Nymex Holdings, owner of the New York Mercantile Exchange. The exchange started trading Oman sour crude futures on June 1.
 The Dubai exchange sees the chance of consolidating the region's commodity and energy exchange activity. Sharaf said he hopes to talk to energy producers in the region that are looking at futures contracts.
Sharaf said the exchange hopes to launch a jet fuel future contract this year and has started preliminary discussions on LNG futures. This came as a new exchange prepares to launch in Qatar . Qatar recently overtook Indonesia as the world's biggest LNG exporter.
The Oman crude contract had modest volumes in its first week, with 6,250 contracts traded on the busiest day. That compares with volumes of more than 200,000 in Intercontinental Exchange's Brent crude, the European benchmark.
DME is also offering spread contracts, giving traders the chance to trade on the price difference between Oman crude and European and US benchmarks. |
