NYMEX and its commodities exchange subsidiary COMEX, have been approved as futures exchanges by the Dubai Financial Services Authority (DFSA).
The DFSA's landmark decision means that for the first time traders based in the Dubai International Financial Centre (DIFC) will be able to directly trade products on the NYMEX (New York Mercantile Exchange) and COMEX exchanges. The development is part of the Exchange's international strategy to expand their customer base by extending access to additional jurisdictions.
NYMEX President and Chief Executive Office James E. Newsome said, "We are honored to be the first futures exchanges to receive approval from the DFSA, which is a world-class regulatory authority.
"Enabling traders within the Dubai International Financial Centre to trade on our exchanges will not only extend our global reach but also reinforces Dubai's position as the world's newest financial centre, serving a vast area from Western Europe to East Asia."
Customers based within the DIFC will also be able to trade on the planned Dubai Mercantile Exchange (DME), a joint venture between NYMEX and Tatweer Dubai LLC, a member of Dubai Holding. The DME plans to list a Middle East sour crude oil futures contract during the fourth quarter of 2006. All trades executed on the DME will be cleared through, and guaranteed by, the NYMEX AA+ rated clearinghouse.
NYMEX will apply to the DFSA for recognition as a clearing house at the same time as the DME applies for Authorised Market Institution status.
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