05/29/2008
The contracts will begin trading on DME Direct™ on Sunday, June 1 at 1800 in New York, which equates to 2300 in London, or 0600 on June 2 in Singapore, for trade date June 2, 2008. The DME will give a three-month fee holiday for the two new contracts. The regular DME fee schedule will be implemented effective for trade date Monday, September 1, 2008.
The new DME Brent Crude Oil Financial Contract (code ZO) will be cash-settled based on the ICE Brent Crude Oil Futures Contract. Trading shall terminate at the close of business on the business day immediately preceding the 15th day prior to the first day of the delivery month, if such 15th day is a banking day in London. If the 15th day is a non-banking day in London (including Saturday), trading shall cease on the business day immediately preceding the first business day prior to the 15th day.
The new DME Oman Crude Oil Financial Contract (code ZG) will be financially-settled based on the physically-delivered DME Oman Crude Oil Futures Contract. Trading shall terminate on the penultimate (second-to-last) trading day of the DME Oman Crude Oil Futures Contract, i.e., the second-to-last business day of the second month preceding the contract month.
Further, the following inter-commodity spreads will be listed on the DME Direct™ platform:
Spread |
Product Description |
ZO:OQ |
DME Brent Crude Oil minus DME Oman Crude Oil (Physical) |
ZG:OQ |
DME Oman Crude Oil Financial Contract minus DME Oman Crude Oil (Physical) |
These new contracts will be listed for up to 72 consecutive months, and the first listed month will be the August 2008 contract month. The contract specifications for the new contracts are available on the DME website:
DME Brent Crude Oil Financial Contract
http://www.dubaimerc.com/contractSpecZO.html
DME Oman Crude Oil Financial Contract
http://www.dubaimerc.com/contractSpecZG.html
In addition to being cleared at the NYMEX Clearinghouse, the new contracts will be available for block trading, which was recently introduced at the DME. Further, Exchange of Futures for Physical (EFP) and Exchange of Futures for Swap (EFS) trades will be available using the NYMEX ClearPort® Clearing platform.