By OGJ editors
HOUSTON, June 14 -- The New York Mercantile Exchange Inc. and Dubai Holding, an investment arm of the Dubai government, are forming the Dubai Mercantile Exchange (DME), a 50-50 joint venture to develop the Middle East's first energy futures exchange.
DME will fill a time zone gap in energy futures trading between Europe and Asia, said NYMEX officials. It is expected to open for trading early next year and will initially trade sour crude and fuel oil.
DME, based in the Dubai International Financial Center, will be regulated by the Dubai Financial Services Authority. Trades executed on the DME will be cleared through the NYMEX clearinghouse in New York.
DME will house open outcry and electronic trading platforms.