Today, the Commodity Futures Trading Commission announced that it has granted exemptive relief to the New York Mercantile Exchange (NYMEX) with respect to three new financially-settled crude oil futures contracts to be traded on the Dubai Mercantile Exchange (DME). The Commission's order will allow NYMEX and registered futures commission merchants to hold DME customer positions and associated funds in segregated accounts with respect to the clearing of one existing physically-settled futures contract and three new financially-settled contracts that will be listed on the DME.
In May 2007, the Commission issued an order, under Section 4d of the Commodity Exchange Act, granting such exemptive relief with respect to certain futures contracts subsequently listed on the DME. Today's order supersedes the May 2007 order and applies to the following four contracts: the existing physically-settled DME Oman Crude Oil futures contract; the new financially-settled DME Oman Crude Oil futures contract; the new financially-settled DME Brent Crude Oil contract; and the new financially-settled DME West Texas Intermediate contract.
NYMEX will continue to provide clearing services to DME along with technology hosting, trade practice compliance, market surveillance, and other services. NYMEX will continue to use the same risk management procedures with the DME contracts as it does with its own contracts.