The Dubai Mercantile Exchange (DME) announced launching, yesterday, its new trading mechanism called 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 contracts, whose prices are directly linked to DME’s daily price index at 12:30 pm, Dubai time.
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, noted a DME statement issued yesterday.
The TAM trading mechanism can be traded on a daily basis for the front three months of the DME Oman crude oil contract, revealed the statement, adding that TAM will be particularly useful for asset managers that want exposure to the DME Oman without needing to participate in the price-formation process or refiners that would like to guarantee that their procurement costs are as close as possible to the Official Selling Price (OSP) of Oman crude oil.
It is worth noting that the DME is a joint venture between Dubai Holding, Oman Investment Fund and CME Group. In addition to its core shareholders, global financial institutions and energy trading firms such as Goldman Sachs, J.P. Morgan, Morgan Stanley, Shell, Vitol and Concord Energy have taken equity stakes in the DME, providing the exchange with a resounding vote of confidence by major players in global energy markets, according DME’s official website.
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, noted a DME statement issued yesterday.
The TAM trading mechanism can be traded on a daily basis for the front three months of the DME Oman crude oil contract, revealed the statement, adding that TAM will be particularly useful for asset managers that want exposure to the DME Oman without needing to participate in the price-formation process or refiners that would like to guarantee that their procurement costs are as close as possible to the Official Selling Price (OSP) of Oman crude oil.
It is worth noting that the DME is a joint venture between Dubai Holding, Oman Investment Fund and CME Group. In addition to its core shareholders, global financial institutions and energy trading firms such as Goldman Sachs, J.P. Morgan, Morgan Stanley, Shell, Vitol and Concord Energy have taken equity stakes in the DME, providing the exchange with a resounding vote of confidence by major players in global energy markets, according DME’s official website.
Source:
Mubasher
