CME raises Dubai Mercantile Exchange stake in recapitalization plan
Source: BI-ME with Bloomberg , Author: Posted by BI-ME staff
Posted: Tue February 21, 2012 12:28 pm



Run MS Office Pro
2010 on latest Win7
Ultimate OS to
increase your
business confidence




Buy HP Pavilion
 laptop with Corsair
DDR3 RAM for
superb performance




Need a personal loan
in Dubai? Contact
Citibank UAE for all
of your banking needs

UAE. CME Group Inc., the world’s largest futures exchange owner, raised it stake in the Dubai Mercantile Exchange as part of a recapitalization arrangement.

CME Group’s Nymex division will increase its stake to 50% from 25%, while Oman Investment Fund will hold 29%, according to a PRNewswire statement released today.

Dubai Mercantile will receive "significant new funds," Chief Executive Officer Thomas Leaver said in a conference call, without providing further financial details.

A unit of Dubai Holding LLC, one of the emirate’s three main holding companies, will retain 9%, while 12% will be held on a non-voting basis by investors including Vitol Group of Cos., Royal Dutch Shell Plc, JPMorgan Chase & Co., Morgan Stanley, Goldman Sachs Group Inc. and Concord Energy Inc.

CME Group offers clearing services for trades done on the Dubai exchange and supports swaps and options contracts that are based on the DME’s main Oman oil futures contract. The DME is seeking to establish the Oman crude futures contract, which gives investors the option to take physical deliveries, as the benchmark for shipments to Asia by interesting more producers in adopting it. The present standard for Middle East crude is the Dubai price assessment.

Leaver has said he is targeting members of the six-nation Gulf Cooperation Council to switch to the Oman contract as a benchmark. The council members are Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Oman and Bahrain.

The exchange, located in the Dubai International Financial Centre, delivered more than 145 million barrels of crude oil in 2011, rising 19% from the previous year, according to today’s statement.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: May 18, 2013
UAE. "The general trading atmosphere is sufficiently negative for gold to enable sellers to have a firm grip on the market. However, I fail to see how the rally in the stock markets can be put into any sensible relation to the economic plight of the underlying countries."
date:Posted: May 17, 2013
EGYPT. The Egyptian government has taken tentative steps towards reducing the roughly US$20 billion subsidy system that supporters say provides vital aid to the one-in-four Egyptians in poverty, and critics say is unsustainable and enriches the corrupt.
date:Posted: May 17, 2013
UAE. Red Hat's Mark Little and Tom Llewellyn explain how Large-scale Elastic Architecture for Data-as-a-Service (LEADS) will enable enterprises to leverage all of the public data on the web against privately held data.



Wide selection of craft tools and coloured pencils will give more options to your creative side


Doing business in the Middle East? Your starting point is GulfTradeHolding, the Middle East Business Directory