For Release: May 1, 2008
CFTC Grants Exemption to NYMEX in Connection with Three New Contracts to be Traded on the Dubai Mercantile Exchange
Washington, DC – Today, the Commodity Futures Trading Commission announced that it will allow NYMEX and registered futures commission merchants to hold DME customer positions and associated funds in segregated accounts with respect to the clearing of one existing physically-settled futures contract and three new financially-settled contracts that will be listed on the DME. The Commission issued the order allowing this relief under Section 4d of the Commodity Exchange Act in response to the NYMEX request for consideration of the proposal.
In May 2007, the Commission issued an order, under Section 4d of the Commodity Exchange Act, granting an exemption to NYMEX with respect to certain futures contracts subsequently listed on the DME. Today's order supersedes the May 2007 order and applies to the following four contracts: the existing physically-settled DME Oman Crude Oil futures contract; the new financially-settled DME Oman Crude Oil futures contract; the new financially-settled DME Brent Crude Oil contract; and the new financially-settled DME West Texas Intermediate contract.
NYMEX will continue to provide clearing services to DME along with technology hosting, trade practice compliance, market surveillance, and other services. NYMEX will continue to use the same risk management procedures with the DME contracts as it does with its own contracts.
R. David Gary
Last Updated: May 1, 2008