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Dubai - Dubai Mercantile Exchange (DME), the premier international energy futures and commodities exchange in the Middle East, today announced the approval of Nanhua USA as a Clearing Member. A futures brokerage firm headquartered in Hangzhou, serving institutional, corporate and individual clients, Nanhua USA becomes the first China-headquartered Clearing Member of the DME.
The move assumes significance in light of the strong interest in DME among Chinese oil traders and the impending launch of a new crude oil futures contract by the Shanghai International Energy Exchange Corporation (INE). The DME signed an MOU with INE in 2014 to build a tighter relationship with its Asian customer base and to support the development of energy trading benchmarks within Asia.
As a Clearing Member, Nanhua USA will be entitled to clear and settle trades carried out by its regional and international customers on the DME.
"We are very pleased to have Nanhua USA join us as a Clearing Member" said Owain Johnson, Managing Director, DME. "The DME Oman Crude Oil Product has become a key benchmark for Asian traders due to its transparency and regulated price discovery mechanism. With energy trading becoming a key growth driver for countries along the crude oil corridor between the Middle East and Asia, the participation and backing of major financial players such as Nanhua will help support greater liquidity for our customers and allow DME to continue its expansion and growth momentum."
David Luo, CEO, Nanhua Futures, said, "We are delighted to be building a relationship with the Middle East's premier energy-focused commodities exchange at a time when it is receiving increasing interest from traders and global financial participants. Nanhua USA's decision to take a clearing membership of the Exchange is a well-calculated move aimed at satisfying the growing appetite among Chinese customers for the DME Oman Crude Oil Product. Besides, DME acts as an important gateway into several high-potential markets, and becoming a Clearing Member on the Exchange allows us to scale up our operations in these markets and provide enhanced market access and trading opportunities to our customers."
Since its establishment in 1996, Nanhua Futures (China) has been actively involved in both commodity and financial futures brokerage services. The company maintains full member status of Shanghai Futures Exchange (SHFE), Zhengzhou Commodity Exchange (CZCE), and Dalian Commodity Exchange (DCE); and is one of the first companies to gain general clearing member status of China Financial Futures Exchange (CFFEX). With registered capital of 510 million RMB, Nanhua Futures is now recognized as one of the top-10 futures companies in China.
Nanhua Futures aims to establish a Global Energy Trading Platform. Currently, we are now the Clearing Member of CME Group and DME, General Participant member of ICE Europe and we are applying for the Clearing membership of ICE US and INE.
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About DME
DME is the premier international energy futures and commodities exchange in the Middle East. It aims to provide oil producers, traders and consumers engaged in the East of Suez markets with transparent pricing of crude oil.
Launched in 2007, DME has rapidly grown into a globally relevant exchange. Its flagship Oman Crude Oil Futures Contract (DME Oman) contract is now firmly established as the most credible crude oil benchmark relevant to the rapidly growing East of Suez market. Reflecting the economics of the Asian region like no other contract, and the largest physically delivered crude oil futures contract in the world, DME Oman is the world's third crude oil benchmark and the sole benchmark for Oman and Dubai exported crude oil.
DME is a fully electronic exchange, with regulatory permissions allowing access from more than 20 jurisdictions, including the major financial centers of Asia, Europe and the United States. The Exchange is located within the Dubai International Financial Center (DIFC), a financial free zone designed to promote financial services within the UAE. The DME is regulated by the Dubai Financial Services Authority and all trades executed on the DME are cleared through and guaranteed by CME Clearing.
DME is a joint venture between Dubai Holding, Oman Investment Fund and CME Group. Global financial institutions and energy trading firms including Goldman Sachs, JPMorgan, Morgan Stanley, Shell, Vitol and Concord Energy also hold equity stakes in the DME.
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© Press Release 2015
