Commodity Online
DUBAI: The Dubai Mercantile Exchange (DME) might introduce gold futures contract and some other derivatives soon.

New York Mercantile Exchange will provide the technology support while the derivative will be traded in the existing DME platform, Gulf News quoting James E Newsome, Presidnet and CEO of New York Mercantile Exchange and Board Member of DME said.

DME, in its first year of operation has already made an international benchmark in sour crude. On June 2, DME will launch two new financially settled contracts for Brent and Oman crude oil, Gulf News report said. 

The new DME Brent Crude Oil Financial Contract and DME Oman Crude Oil Fin-ancial Contract will be listed for trading on DME Direct, the exchange's electronic trading system.

These new contracts will provide traders on the DME with the essential tools for effecting a commonly traded over-the-counter transaction, the spread between sweet and sour crude oil benchmarks.

The DME Brent Crude Oil Financial Contract will be cash-settled against Intercontinental Exchange's (ICE) Brent Crude Futures Contracts, while the DME Oman Crude Oil Financial Contract will be cash-settled against the DME Oman Crude Oil Futures Contract.

The DME also received the Commodities Futures Trading Commission (CFTC) approval on a financially settled DME West Texas Intermediate Contract, which is expected to be launched in the near future.

In addition to being cleared at the NYMEX Clearinghouse, the new contracts will also be available for block trading (recently introduced by the DME) as well as Exchange for Physical (EFP) and Exchange for Swap (EFS) trades, using Nymex's ClearPort Clearing, the Gulf News report added.

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