TOCOM and DME to Collaborate on Energy Products

3.17.2014

 

The Tokyo Commodity Exchange, Inc. (TOCOM), Asia’s leading commodity derivatives exchange listing industrial and agricultural products, and DME, the premier international energy futures and commodities exchange in the Middle East, today announced that they have signed a Memorandum of Understanding (MoU) on March 12 to strengthen their cooperation in promoting the development of energy contracts and in particular crude oil which is listed on both exchanges.

TOCOM and DME will explore several areas of cooperation ranging from joint marketing activities, offering new services to facilitate trading for participants in both markets, in addition to working together to enhance their respective role as marketplaces providing key benchmarks for Asian crude, with the objective of boosting trading activities in both markets.

Tadashi Ezaki, President and CEO of TOCOM said, “I am delighted to sign this MoU which signifies our efforts in strengthening cooperation with the DME. TOCOM plans to offer a comprehensive slate of energy products, including LNG and electricity, and is preparing for the launch of energy-related OTC trading/clearing services. In this context, I firmly believe that our collaboration with DME will play an important role as we commit ourselves to better serve the needs of the energy community by offering a vibrant, liquid market with ease of access to participants all over the world.”

On this occasion, Christopher Fix, Chief Executive Officer of DME said, “The MoU with TOCOM is a major development in our strategic initiative to build closer relationships with Asian customers and to support the development of energy trading benchmarks within Asia. With the Asian market driving the bulk of global oil consumption, I believe this MoU will facilitate development on both sides and will allow us to work together on areas of mutual interests to strengthen market efficiency and capitalize on long term growth opportunities while taking into account the risk management needs of u


About DME

DME is the premier international energy futures and commodities exchange in the Middle East. It aims to provide oil producers, traders and consumers engaged in the East of Suez markets with transparent pricing of crude oil.

Launched in 2007, DME has rapidly grown into a globally relevant exchange. Its flagship Oman Crude Oil Futures Contract (DME Oman) contract is now firmly established as the most credible crude oil benchmark relevant to the rapidly growing East of Suez market. Reflecting the economics of the Asian region like no other contract, and the largest physically delivered crude oil futures contract in the world, DME Oman is the world’s third crude oil benchmark and the sole benchmark for Oman and Dubai exported crude oil.

DME is a fully electronic exchange, with regulatory permissions allowing access from more than 20 jurisdictions, including the major financial centers of Asia, Europe and the United States. The Exchange is located within the Dubai International Financial Center (DIFC), a financial free zone designed to promote financial services within the UAE. The DME is regulated by the Dubai Financial Services Authority and all trades executed on the DME are cleared through and guaranteed by CME Clearing.

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.  www.dubaimerc.com

About Tokyo Commodity Exchange (TOCOM)

The Tokyo Commodity Exchange, Inc. (TOCOM) is Japan’s largest commodity futures exchange with a trading volume of 27.2 million contracts, representing a 98.6% market share, in 2013, and one of the most prominent exchanges in Asia. Futures and Options contracts on a variety of industrial products (i.e.: gold, silver, platinum and palladium in the precious metals market; crude oil, gasoline, kerosene and gas oil in the oil market; gasoline and kerosene in the Chukyo-oil market, RSS3 in rubber market) and agricultural products (soybeans, corn, azuki and raw sugar) are traded electronically. Its Gold market is most liquid in East Asia and the Platinum market is most liquid in the world. TOCOM Rubber is the established benchmark utilized globally.

TOCOM was established in 1984 as a result of a merger between the Tokyo Textile Exchange, founded in 1951, the Tokyo Rubber Exchange and the Tokyo Gold Exchange. TOCOM became a for-profit stock company in December, 2008.

TOCOM's recent achievements include launching a new trading platform based on the Nasdaq OMX technology in May 2009 and extending the night session until 4:00 JST in September 2010. The Exchange has continuously implemented series of reforms and introduced various trading rules in line with global standards to establish a sound commodity market open to the global trading communities. www.tocom.or.jp

 

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