Middle of It All
The agreement between CME Group and the Dubai Mercantile Exchange (DME) to exclusively list DME products on the CME Globex electronic trading platform came to fruition when DME’s Oman Crude Oil futures contract and Oman Crude Oil Financial futures contract began trading on CME Globex in early February.
The migration of the DME Oman Crude Oil Futures Contract to CME Globex allows global energy customers to trade the world’s three crude oil benchmark products on one platform. The Oman Crude Oil futures contract is increasingly recognized as the first successful exchange-traded contract providing price transparency in the East of Suez markets.
“The transition of DME’s contracts to CME Globex further represents the benefits of merging NYMEX businesses with CME Group,” says CME Group Executive Chairman Terry Duffy. “It not only increases the distribution of the contracts to a global set of hedgers and investors, but also opens up new possibilities for arbitrage and other sophisticated trading strategies on a virtually 24-hour platform,”
“This is a mark of success that the DME has achieved in building robust contracts recognized and traded by leading industry participants,” says DME Chairman Ahmad Sharaf. “The visibility and reach offered by the CME Globex platform will dramatically increase the global exposure of both the DME Oman Crude Oil futures contract and the DME Oman Crude Oil financial contract.”
“We are very pleased with the continued growth in CME ClearPort, which provides central counterparty clearing services for a broad range of energy products,” says CME Group Chief Executive Officer Craig Donohue. “The DME Oman contract, which is the most widely recognized benchmark for East of Suez markets, offers additional long-term growth potential, especially when coupled with the extensive distribution of CME Globex.”
“This next step in our development will open the contract to a new and diverse set of market participants,” says DME Chief Executive Officer Thomas Leaver. “We will continue to work with our core stakeholders, strategic partners and existing customers and traders to build on this momentum throughout 2009 to identify avenues of growth that will drive the DME to new heights.”
Pulp Futures
CME Group is not pushing paper, but rather, trading paper’s source. Hardwood pulp index futures and options – the first products of an anticipated forestry products suite – started trading on the CME Globex electronic trading platform on January 12.
The cash-settled contract is based on the PIX BHKP Europe Index by FOEX Indexes Ltd., a private Finland-based independent company, which specializes in providing audited and registered pulp and paper price indexes.
“Since the new hardwood pulp contract will follow with the current softwood pulp contract and settle to a FOEX Index, the industry standard for the global forest products industry, market users will have additional opportunities and flexibility in their trading,” says CME Group Director of commodity products John Harangody.
Education for the Future
CME Group is known throughout the business community for its innovation and philanthropic emphasis on education. Now it is intent on promoting education through the creation of the CME Group Foundation, a private foundation created and endowed with $16 million from the CME Trust, to primarily serve K-12 and higher education.
“CME Group will build on the work of the CME Trust by further refining its focus on higher education, primarily in economics and technology, and early education and development,” says CME Group Foundation Chairman and CME Group Chairman Emeritus Leo Melamed.
The foundation’s mission is to enhance economic opportunity by supporting academic initiatives; promote research, teaching and learning in the financial markets, futures and derivatives; promote the education of disadvantaged children; and promote the health and education of young children.
In 2008, the foundation awarded $620,000 in grants to programs in the Chicago area. This included:
- The Children First Fund
- The Chicago Public Schools Foundation in support of the Social Science Blueprint Project
MOUSE, Inc., a student-driven program that addresses the technology needs of public schools - The University of Illinois Chicago International Center for Futures and Derivatives
- Funding for economics education segments on Chicago Tonight.
Talk Turkey
CME Group added to its growing suite of emerging market foreign exchange (FX) contracts when it launched Turkish lira futures in the first quarter of 2009. Turkey’s gross domestic product is approaching $950 billion and is forecasted to grow at 5.4 percent in 2009, which bodes well for interest in the contract.
“We see emerging markets currencies, such as the Turkish lira, as another component in growing our FX business around the world,” says CME Group Managing Director, FX, Derek Sammann. “As Turkey continues its development within the global economy, the lira contract will be a key plank in our growing emerging markets currency products.”
Turkish lira futures are denominated in both U.S. dollars and euros. They are offered exclusively on the CME Globex electronic trading platform.
Give a Little Bid
Customers, employees and shareholders raised their auction cards and entered their bids on November 12 when the NYMEX Foundation hosted silent and live auctions to raise money for organizations that benefit New York City’s children. Between the auctions and various donations, the event raised $665,000.
CNBC’s Rebecca Jarvis emceed the 9th annual live auction, and New York Yankee’s announcer John Sterling and television actor Bobby Burke were on hand as guest auctioneers. Mark Farner, formerly of Grand Funk Railroad, provided the night’s entertainment.
Participants had the opportunity to bid on such prizes as a 2009 Cubs Dream Day, tickets to attend The Oprah Winfrey Show, introductory aerobatic flying lessons, lunch with CME Group Executive Chairman Terry Duffy, as well as myriad autographed sports memorabilia.
A majority of the funds raised support New York state summer camps for inner-city children, such as SCOPE (Summer Camp Opportunity Provides an Edge), as well as year-round after-school programs like Harlem RBI, Safe Space and PAL (Police Athletic League), New York City’s largest nonprofit independent youth organization.
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