The Dubai Mercantile Exchange Limited (DME) said cumulative trading of its benchmark DME Oman Crude Oil Futures Contract (DME Oman) has exceeded two million contracts on Sunday, representing two billion barrels of crude oil traded since its launch on 1 June, 2007.
in a press release, DME said at the close of trading on 25 March 2011, DME Oman had traded a total of 2,001,625 contracts, which at 1,000 barrels per contract is equivalent to more than two billion barrels of crude oil.
Reflecting the growing liquidity of its flagship contract, the DME recently reported a 35% year-on-year increase in trading volumes and record levels of open interest. Today, more than 60 companies trade regularly on the exchange while in excess of 140 million barrels of crude oil were delivered through the DME during 2010, confirming the status of DME Oman as the world's largest physically delivered crude oil futures contract.
The DME started 2011 on a positive note by setting a new trading record with average daily volumes being the highest since the launch of the exchange. The DME's role as a provider of risk management capabilities was further enhanced through the introduction of eight new DME-Oman linked swap and option contracts that will help industry participants manage their price risk more effectively in the Middle East and Asia Pacific energy markets. The swap and option contracts were launched by
the CME Group, a core shareholder of the DME.
Making today's announcement, Ahmad Sharaf, Chairman of the DME commented: "I am very pleased to report this important trading milestone to the market. Since its launch, the DME Oman contract has demonstrated its effectiveness as the most appropriate pricing benchmark for East of Suez crude oil markets.
Growing liquidity and continued organic growthat the DME compellingly demonstrate the strong fundamentals of the exchange, the importance of the DME Oman contract and its role in achieving fair value and price discovery in the world's fastest growing commodities market.
As the exchange approaches its fourth year of operations, the DME Oman continues to gain industry acceptance and
consolidate its position as the global benchmark for sour crude in the East of Suez markets".
Thomas Leaver, Chief Executive Officer of the DME, added: "Reaching this important milestone is testament to the confidence that the market has in the DME and our Oman contract.
From transparency, price discovery and risk management to the seamless efficiency of the world's largest physically delivered crude oil contract, our customers know that they can rely on the DME, especially in these volatile times.
