DFM launches trading of Oman Crude Oil Futures Contracts

The Dubai Financial Market (DFM) today launched the trading of Oman Crude Oil Futures Contracts, providing investors with a unique investment opportunity to invest in this key asset class…reports Asian Lite News

The (Micro DME Oman Crude Oil) was launched during a market opening bell ringing ceremony in the presence of Hamed Ali, CEO of DFM and Nasdaq Dubai and Raid Al-Salami, Managing Director of DME, in addition to senior representatives of launch partners of the new product such as market makers and trading members.

The new futures monthly contract from DFM tracks the performance of DME’s Oman Crude Oil Futures, making it accessible to a large number of investors. It is traded in the US Dollar and cash-settled as per its closing price.

The contract enables investors to take part in Middle East oil price movement and diversify their portfolios alongside other DFM products.  A diverse product portfolio enhances risk management and the leverage potential against a lower principal amount of investment, enabling the investors ability to maximize their portfolio size.

Commenting on the this, Hamed Ali, CEO of DFM and Nasdaq Dubai, said: “The launch of Micro DME Oman Crude Oil Futures is a new millstone for DFM as it brings in an entirely new asset class to the market enabling our investors, in particular retail investors, to participate in the opportunities of one of the key economic sectors in the region. We would like to extend our sincere thanks to DME for their cooperation with us to accomplish this significant step that creates a solid foundation for other joint initiatives, which ultimately strengthens Dubai’s position as a capital markets hub, in line with the leadership’s vision and strategy to develop financial markets in Dubai.”

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Raid Al-Salami, Managing Director, DME, said: “The micro DME contract offers retail investors the opportunity to trade a Middle Eastern crude oil futures contract for the first time in the region. DME will always look to enrich the local financial market in order to enhance the position of the Emirate of Dubai as one of the major global capital hubs.”

Trading of the new contracts is supported by 3 market makers including; xCube, Al Ramz Capital and BHM Capital. Several DFM Trading Members will service the contract, including; International Securities, BHM Capital Financial Services, Al Ramz Capital, Mena Corp Financial Services, Al Dar Shares and Bonds, SICO Financial Brokerage, EFG Hermes (UAE) and Arqaam Securities.

The new contracts are also the first outcome of the collaboration agreement between DFM and DME to develop new investment opportunities and offer retail investors the opportunity to be directly involved in the biggest and most relevant asset class in the region.

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