DME Oman finds place in US commodity fund
Dubai, January 22, 2013
Dubai Mercantile Exchange (DME) said for the first time its flagship crude oil futures contract, DME Oman, will be included in a new US-based commodities fund which will give investors exposure to Asia's rapidly growing demand for raw materials.
DME is a 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.
The inclusion of DME Oman in the United States Asian Commodities Basket Fund (USACBF) recognizes the critical benchmarking role being played by the futures contract in the expansion of the east of Suez markets, besides providing transparent price discovery and reflecting the economics of the Asian region like no other crude oil futures contract.
DME's chief executive Chris Fix said, "DME Oman's inclusion in, we believe, its first fund is a significant milestone and ringing endorsement of the relevance of DME to the growth of the Asian oil market. Like us, this fund is betting on the rapid growth of crude oil consumption in countries like China and India and I feel certain that over time other funds will follow the lead this launch sets."
"We're already seeing 40 per cent of the crude oil traded on the DME going to China and are confident that as our market matures, volumes will continue to build, aided by DME Oman's inclusion in more Exchange Traded Funds," he stated.
"This fund being listed in the US will make trading in DME Oman truly global like never before, opening up access to the US investor community for the first time".
The USACBF will be listed on NYSE Arca and own futures in those commodities where China, Japan and India combined account for at least 10 per cent of global demand and are likely to be net importers.-TradeArabia News Service
More Finance & Capital Market Stories
- ADS Securities inks deal with Tunes Group
- EMP expands Iraq card operations
- Dubai ICD planning to boost $2bn loan
- CEO-elect of fraud-hit Rakbank quits
- Saudi foreign assets hit record $668.2bn
- Major trade success for BBK Brokerage
- NBAD raises convertible bond issue to $465m
- Mashreq to enhance mobile banking app
- NBK Capital exits Turkey hospital chain
- Abu Dhabi holding firm Senaat plans share sale