$5.25 billion contracts traded on DME
Posted: 01 October 2007
 Send this article
 Print this article
The Dubai Mercantile Exchange Limited (DME) announced last week a record of 100,000 contracts worth $5.25 billion traded on the exchange since its launch on June 1, 2007.
This surge in volumes has been supported following a successful physical delivery of DME futures contracts traded during the month of June and the opening of the exchange’s trading floor.
DME has also seen continued growth and increased trading activity as new participants enter the market on a daily basis with a growing interest in pricing benchmark Oman Crude Oil Futures Contract.
Strong interest and growing support from the Asian market, particularly from Singapore , has been instrumental in reaching this important target. Trading on the DME has averaged 1,863 contracts per day since the start of the month.
According to DME, daily average volume in May 2007 was 1.382 million contracts per day. Almost 55 million barrels were traded since its June 1 opening with 4,000 contracts to physical delivery, which was only 6,000 barrels short of a world record that was set by Nymex in October 1995.
However, Oman crude futures exchange dipped more than half from its high initial volume margin in the following months from 4000 to only about 100 contracts during the summer months drawing a number of disappointed traders.
“Following a relatively quiet period over the summer months, we are pleased to see new participants entering the market. Especially gratifying is the volume growth that we are experiencing out of Asia,” said Gary King, chief executive officer of the DME.
“We believe that this enhanced interest from the Asian market reflects increased confidence in the Oman Crude Oil Futures Contract and its physical delivery mechanism.”
Meanwhile, DME has witnessed the increase in both trading activity and open interest in the futures contracts listed for delivery in 2008. In recent weeks the DME has seen active trading as far as the December 2008 contract.
According to DME, this increased activity provides greater transparency for the trading and pricing of Middle East sour crude oil for all market participants and is expected to help attract even further interest across key trading centres. Exchange wide open interest is currently at 4,907, an increase of 2,600 since the beginning of September.
Ahmad Sharaf, chairman of the DME, said: “We are delighted to have reached this major milestone less than four months since our historic launch. The continued growth in volumes and open interest through December 2008 is evidence of the continued strong and ever growing acceptance of the Oman Crude Oil Futures Contract among energy traders around the world.”
“In launching the DME, we aimed to establish a premier international energy futures and commodities exchange and to create a global benchmark for the pricing of Middle East sour crude oil. We are confident that we are now well on our way to realising these objectives.” |
