Korea Exchange (KRX), a leading North Asian equities and derivatives operator, and the DME, a premier energy futures and commodities exchange in the Middle East, have signed a deal to strengthen co-operation in promoting the development of commodity futures contracts and in particular crude oil.

Under the memorandum of understanding (MoU), KRX and DME will work together to develop crude oil futures trading in Korea, with a particular focus on developing an energy trading ecosystem around the National Oil Hub Project in Ulsan, Korea, said a statement.  

Ulsan aims to become the energy hub for Northeast Asia by developing large scale oil storage and port facilities to complement its existing petrochemical infrastructure and ports, it said.

Meanwhile, KRX and DME will also explore other areas of co-operation, including joint marketing arrangements, cross-listing agreements, staff exchange and joint research.

Kyoungsoo Choi, chairman and chief executive officer of KRX, said: "I am delighted to sign this co-operation agreement which marks a milestone in our relationship with DME. KRX is increasingly active in the commodity space and we are excited to work with our new partner to develop energy contracts in the run up to the commissioning of the National Oil Hub in Ulsan.”

Christopher Fix, CEO of DME, said: "DME is keen to support the development of energy trading benchmarks within Asia as we believe this will be a natural complement to the DME Oman crude oil contract, which is an export benchmark for the Middle East.

“DME looks forward to exploring those synergies with our new partners at KRX and we are also delighted at the opportunity to get involved in the Ulsan oil hub project, which has tremendous potential.” - TradeArabia News Service