DME trading volumes up 84pc
Dubai, March 3, 2014
Dubai Mercantile Exchange (DME) has recorded daily average trading volumes of 10,764 lots in February, up 84 per cent compared to the same period last year.
The volume, which is equivalent to nearly 10.7 million barrels of crude oil per day, was a 32 per cent increase on the previous month, said a statement.
The surge in trading volume saw daily volumes crossing more than 10,000 contracts (10 million barrels) driven by the presence of an increasing and diverse customer base made up of oil producers, refiners, trading companies and financial players, such as banks, hedge funds and proprietary traders, it said.
In February, Idemitsu Kosan joined the exchange as a trading member becoming the first Japanese refiner to do so. The DME and Royal Bank of Scotland also announced a joint initiative aimed at issuing letters of credit for trading on DME directly from Singapore.
Ahmad Sharaf, chairman, said: "Customer confidence in the DME value proposition from a price discovery and transparency standpoint and the rapidly expanding customer base is translating into exponential growth in trading volumes and yet another record month for the DME.
“The exchange is now on a sustained growth curve driven by its unique ability, a distinctive competitive advantage, of accurately capturing the price formation of eastern trade flows, and the rapidly growing interest from customers in gaining exposure to the increasing demand for crude oil from the East of Suez markets.” - TradeArabia News Service