DME inks pact with Indian stock exchange

Dubai Mercantile Exchange (DME), the premier international energy futures and commodities exchange in the Middle East, has signed a memorandum of understanding (MoU) with Bombay Stock Exchange (BSE), India’s premier exchange and the world’s fastest Stock Exchange with a speed of 6 microseconds, to explore ways in maximising the potential of the commodities market in India.
The strategic partnership, which comes on the heels of BSE’s launch of its commodities derivatives trading platform on October 1, will help create a resourceful commodities derivatives market to facilitate tremendous growth in the country’s energy sector.
Commenting on the signing of the MoU, Raid al Salami, Head of DME, said: “As the world’s fastest-growing major economy, India offers seamless opportunities across industries, particularly in the energy sector. With its growing needs for energy imports, the country has become a key focus market for global industry players, and our collaboration with BSE will enable us to tap into the country’s thriving energy market. We will leverage our expertise in facilitating energy futures and commodities trading to enable BSE to further promote its new trading platform for commodities derivates and better serve the needs and interests of the domestic derivatives market.”
On his part, Ashishkumar Chauhan, MD & CEO, BSE, said: “At BSE, we have always focused on identifying and creating new business opportunities that will contribute to the development of the nation. We believe that it is important to build mutually beneficial relationships in the journey of shared goals. With the fundamental objective of evolving the commodity derivatives market, we are pleased to associate with DME in this endeavour that will immensely help all stakeholders.”
Launched in 2007, DME has rapidly grown into a globally relevant exchange. Its flagship Oman Crude Oil Futures Contract (DME Oman) contract is the world’s third crude oil benchmark and the sole benchmark for Oman and Dubai exported crude oil.
DME is a joint venture between Dubai Holding, Oman Investment Fund and CME Group. Global financial institutions and energy trading firms including Goldman Sachs, JPMorgan, Morgan Stanley, Shell, Vitol and Concord Energy also hold equity stakes in the DME.