Christopher Fix Invest in Iraq Stock Exchange conference Session III: Enhancing the Level of Cooperation among Arab and International Stock Exchanges Christopher Fix Chief Executive Officer DME
The role of exchanges in developing regional financial hubs Invest in Iraq Stock Exchange Conference By Christopher Fix, CEO, DME Ritz Carlton Dubai, May 2014
DME is the world’s third physical oil exchange Paper contract Physically settled contract Reasons for setting up DME: Legacy sour crude benchmark shrinking physical base – producers and Asian consumers looking for replacement Asia commoditizing and opportunity exists to capture Asian business Transfer know-how and establish regional trading ecosystem Founded: 1898 Oil contract: West-Texas Intermediate (launched 1982) Founded: 2000 Oil contract: Brent (launched 1986) Founded: 2006 Oil contract: DME Oman (launched 2007)
Our partners bring know-how, capital and commitment to the development of the region Shareholder structure
Exchanges are at the heart of modern economies Sellers Investor relations Brokers Trade finance Financial institutions Regulators Physical infrastructure Media Exchanges create high-value jobs in related industries
No exchange is an island – investors trade across multiple platforms 1 Exchanges should adopt complementary technology – DME uses CME’s Globex system 2 Exchanges should seek margin efficiencies for customers – DME makes use of CME Clearing 3 Exchanges should share best practice – DME is working on a number of MOUs 4 Exchanges need to embrace international best practice but not neglect regional roots 5 Exchanges that are interlinked will always outperform isolated exchanges
About the DME Our flagship contract – DME Oman – has seen volumes growth consistently since launch Average Daily Volume, contracts (2007 –20141) Annual +32% 2007 2008 2009 2010 2011 2012 2013 2014 1 Includes data up 29th April, 2014
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