DUBAI, 28 May 2008 — Dubai Gold & Commodities Exchange (DGCX) launched its West Texas Intermediate (DWTI) Light Sweet Crude Oil and Brent Crude Oil (DBRC) futures contracts at a ceremony held here yesterday. “The contracts mark the beginning of a new phase in the region’s commodity trade” said Sultan ibn Sulayem, chairman of Dubai World.
The region’s first ever cash-settled WTI & Brent crude oil futures went live on DGCX at 8.30 a.m. local time, enabling investors to trade and clear transactions in the UAE. The products seek to energize the portfolio of investors by offering new risk management tools, besides providing time and cost efficiencies. A strategic initiative, the crude oil contracts are set to launch the next stage of growth for DGCX.
A fee waiver will be in place for the DBRC and DWTI crude futures contracts until August 26, 2008. Each DGCX crude oil futures contract is sized at 1,000 barrels, with the contract price quoted in US dollars and cents per barrel. The minimum price fluctuation will be one cent per barrel, equivalent to a tick value of $10.
