DME 2014 trading volume up 33%


The Dubai Mercantile Exchange (DME), an energy futures and commodities exchange, has announced 33 per cent growth in trading volumes to average 8,431 lots per day.

Over 160 different traders from more than 90 entities traded on the DME in 2014 - the broadest level of participation ever recorded, the exchange said in a media release.

During the year, DME set records in every aspect of the DME Oman contract with record daily and monthly volumes, record physical delivery, record EFP (Exchange Futures for Physical) activity, and record open interest in addition to record marker windows.

In December, DME average daily volume (ADV) was 6,975 lots (7m barrel), which was 9% up year-on-year. Physical delivery for February loading was 11.6m barrel while EFP/EFR (Exchange for Risk) volumes were 7.8m barrel.

Christopher Fix, CEO of DME, said: “Our consistent growth in volumes can also be attributed to the confidence of global players in the DME value proposition which has been boosted by measures that we have taken to enhance our trading platform. The global oil markets have never been more volatile and so the need for quality benchmarks and hedging mechanisms has become even more imperative.”

DME said a key focus last year was to make trading easier for customers and so the exchange allowed Letters of Credit (LCs) to be issued from Singapore and Tokyo with participating banks SocGen, RBS, Rabobank and Mizuho. The exchange also introduced Trade at Marker functionality and revised the duration required for LCs.

The DME said it made major strides in increasing the number of market participants in 2014 in order to expand its presence globally. The exchange added four new trading members – Marubeni, Idemitsu, Mitsui, Itochu – in addition to attracting four new clearing members, namely GH Financials, Advantage Futures, Phillip Capital and Straits Financial.

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