News Column

DME to use new trading tool for Oman futures

July 1, 2014

Times News Service



Dubai: The DME, the Middle East's premier international energy futures and commodities exchange, launched a new trading mechanism on Tuesday, Trade at Marker (TAM), for customers of the DME Oman crude oil futures contract.



TAM will allow the DME customers to buy and sell oil at a price directly linked to the DME's 12:30pm Marker Price.  The average of the month's Marker Prices on DME is the basis of the crude oil export price of the Sultanate of Oman and the Emirate of Dubai, making the DME Marker Price one of the world's key energy benchmarks.



The ability to trade the Marker Price directly will be very useful to investors who want exposure to Oman and Dubai's crude oil export price but who may not necessarily want to trade during the DME's settlement window.



The TAM trading mechanism can be traded on a daily basis for the front three months of the DME Oman crude oil contract. The TAM will be particularly useful for asset managers who want exposure to the DME Oman without having to participate in the price-formation process or refiners who would like to guarantee that their procurement costs are as close as possible to the Official Selling Price (OSP) of Oman crude oil.



Christopher Fix, Chief Executive Officer of DME, said, "We are always committed to providing our customers with different tools to manage their risk more easily. At a time when price volatility has returned to the market, a trading mechanism like Trade at Marker that provides greater certainty in execution will be very attractive to some traders. I am confident that this launch will add to the DME's growing reputation for innovation."


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Source: Times of Oman


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