DFSA licenses DME and recognises NYMEX as clearing house

Notes and media contacts

For further information, please contact:

John Gilchrist
Dubai Financial Services Authority
Level 13, The Gate
Tel: +971 (0) 4 362 1662
Fax: +971 (0)4 362 0801

Angharad Irving-Jones / Fayrouz Adi
Dubai Financial Services Authority
Level 13, The Gate
Tel: +971 (0) 4 362 1662
Fax: +971 (0)4 362 0801

The Dubai Financial Services Authority (DFSA) is an independent, integrated regulatory authority responsible for the regulation of all financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), including asset management, banking, securities trading, Islamic finance, re-insurance, and an international financial exchange. The DFSA has been created using principle-based primary legislation modelled closely on that used in London and New York, and the DFSA regulatory regime operates to standards that meet or exceed those applying in the world's major financial centres.

The DFSA is a central component of the DIFC, a new financial centre established to position Dubai as a recognised hub for institutional finance, and the regional gateway for capital and investment to the Middle East.

Mr. David Knott was appointed Chief Executive of the DFSA on June 1, 2005. He is a former Chairman of the Australian Securities and Investment Commission and was Chairman of the Technical Committee of the International Organisation of Securities Commissions (IOSCO).

The Dubai Mercantile Exchange Limited (DME) is the first energy futures exchange in the Middle-East. The DME will initially list three contracts: the Oman Crude Oil Futures Contract, which will be the first ever physically delivered Middle East sour crude oil futures contract; the Brent-Oman Financial Spread Contract and the WTI-Oman Financial Spread Contract.

The DME is a joint venture between the New York Mercantile Exchange, Inc. (NYMEX) and a subsidiary of Dubai Holding, "Tatweer Dubai Limited". The Sultanate of Oman's Ministry of Finance announced on 20 November, 2006 that it has reached a consensus for agreement with the DME to acquire a 30% equity stake in the DME.
NYMEX, headquartered in New York City, is a pre-eminent energy trading forum. It offers liquid futures and options markets in light sweet crude oil, refined products and an extensive array of energy-related and precious metals contracts, including freight futures based on principal global oil shipping routes. Dubai Holding is a Dubai-based organization that manages major economic development projects. It's goal is to make Dubai the unsurpassed centre of finance, trade, tourism and industry in the region. Dubai Holding currently manages $20 billion worth of local and international investments across the real estate, media, healthcare and financial sectors.

An Authorised Market Institution (AMI) is an entity incorporated in the DIFC, that has received a License from the DFSA to carry on either or both of the Financial Services of Operating an Exchange and Operating a Clearing House, as defined in Rules 2.17 and 2.18 of the General Module of the DFSA Rulebook respectively. AMI's are subject to the Licensing Criteria contained in chapter 7 the AMI Module of the DFSA Rulebook that apply at the time of granting the License and at any time thereafter, and are subject to the ongoing risk-based supervision of the DFSA.