Dubai, UAE, 4 July 2006 -The Dubai Mercantile Exchange Limited (DME) announced today that construction has commenced on its state-of-the-art trading floor and office space in the Dubai International Financial Centre (DIFC).
Occupying two floors of District Building Number 2, the work will enable the Exchange to erect a two-storey high trading floor equipped with the latest technology for traders to conduct business on the DME's electronic trading platform. The DME's facilities will also have the capacity to house the increasing number of Exchange staff as the DME continues to progress towards its launch later this year.
Concluding months of planning and design, the international architectural firm Gensler was on hand to witness the historic moment when construction began. Their New York based team has extensive experience in exchange and trading floor development and is working with consultants Dar Consultants, Tatweer, and Turner Construction International, as well as local contractors from Al Nabooda Interiors and Bilt Middle East to complete the interior design of this technologically advanced facility.
The 500 square-metre trading floor will consist of trading hubs fitted with all the tools necessary for traders to transact energy futures contracts and manage their risk from the trading floor. This will include personal computers, telephones, internet access and an electronic trading system. The DME trading floor will also incorporate a twenty five square metre video wall on which traders will be able to view market data, video, news wires and other real-time information, and from which regional and international television stations will be able to report and shoot live footage from the floor of the DME.
The DME is the first exchange to offer this unique 'hub concept' that will create an energy trading community on its floor and help to generate liquidity. In addition to individual seats, two-, four- and six-seat hubs will be offered to the local and international trading community. The hubs will give firms the opportunity to physically relocate to the DME, bringing together experienced traders, global banks, local institutions and individuals from around the world.
The DME also announced that in order to be located on the Exchange floor, firms will be required to apply for membership of the DME. Details of the membership application and selection process will be announced at a later date. However, trading the DME's Oman Crude Oil futures contract is not only limited to its members. Customers located outside of the DIFC will also be able to trade DME futures contracts on the electronic Exchange, provided they meet the appropriate regulatory requirements.
Chairman of the DME Board of Directors Ahmad Sharaf commented: "I believe this new trading facility will be the centre of activity for energy trading in the Middle East. Traders from around the world were asked what they would require from an electronic traded floor environment, and their consequent feed-back was incorporated. Work has now commenced on creating the sophisticated, leading-edge facility that these traders feel is required for a leading international commodity exchange."
Gary King, Chief Executive of the DME added: "In light of our recent announcement regarding the terms and conditions of the Oman Crude Oil futures contract this is yet another significant step towards a successful launch of the Exchange later this year."
-Ends-
About the Dubai Mercantile Exchange
The Dubai Mercantile Exchange Limited's (DME) establishment of an exchange inside the Dubai International Finance Centre (DIFC) is subject to regulatory approval from the Dubai Financial Services Authority (DFSA) to be licensed as an Authorised Market Institution to operate as an exchange inside the DIFC. Furthermore, all clearing and settlement services to be provided by the New York Mercantile Exchange to DME are subject to the New York Mercantile Exchange becoming recognised by the DFSA to operate a remote clearinghouse in the DIFC and subject to the review and / or approval of the Commodity Futures Trading Commission. Until the above regulatory approvals have been granted, no trading on the DME will be permitted and no person will be admitted as a member of the DME.
The Dubai Mercantile Exchange Limited (DME), a joint venture between the New York Mercantile Exchange, Inc. (NYMEX) and Tatweer, aims to become the premier commodity and energy futures exchange in the Middle East, providing a financially secure, well-regulated and transparent trading environment.
Expected to launch in the fourth quarter of 2006, the Exchange will initially develop and trade an Oman Crude Oil Futures Contract. This will address a growing market need for price discovery of Middle East Sour Crude Oil while simultaneously bridging the time zone gap between Europe and Asia by providing for the trading of energy futures, options and other products.
The DME will be a fully electronic exchange. However, in a unique concept, it will also bring together a community of traders that will operate from trading hubs and individual trading stations on the Exchange's floor, which will be located within the Dubai International Financial Centre (DIFC), the region's leading financial services centre.
The DME will be regulated by the Dubai Financial Services Authority (DFSA), a world class, independent regulator and all trades executed on the Exchange will be cleared through, and guaranteed by, NYMEX's AA+ rated clearinghouse.
For further information, please contact:
Financial Dynamics:
London:
Alya Shakir
+44 20 7269 7165 / alya.shakir@fd.com
Asia:
Se?n Galvin
+44 7788 568245 / sean.galvin@fd.com
Julie Wang
+852 2293 2258 / julie.wang@fd.com
GCC:
Laila Danesh
+973 17537072 / laila.danesh@fd.com
New York:
Scot Hoffman
+1 212 850 5617 / scot.hoffman@fd.com
Amy Rosenberg
+1 212 850 5615 / amy.rosenberg@fd.com
© Press Release 2006
