Dubai DME Secures CFTC Approval on Trading by Direct Access From the US

The US commodities regulator, the Commodity Futures Trading Commission (CFTC), has issued an order of registration to Dubai Mercantile Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Limited (DME), the premier energy-focused commodities exchange in the UAE and home to the world's third crude benchmark.

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The decision enables DME’s US-based identified members or other participants to enter orders directly from the country through DME Direct, the exchange’s electronic order entry and trade matching system.

Launched in 2007 with the goal of bringing transparent price discovery to the East of Suez, DME is located within the Dubai International Financial Center (DIFC), a financial free zone designed to promote financial services within the UAE.

The exchange is a joint venture between Dubai Holding, Oman Investment Fund and CME Group. In addition to its core shareholders, global financial institutions have taken equity stakes in DME such as Goldman Sachs, J.P. Morgan and Morgan Stanley.

The CFTC said that DME made representations that confirmed its solid regulatory status and also satisfied the requirements for registration under the agency’s rules. DME is regulated by the Dubai Financial Services Authority and all trades executed on DME are cleared through and guaranteed by CME Clearing.

The agency noted: “After reviewing the FBOT’s application, the CFTC determined that DME has demonstrated its ability to comply with the requirements of CFTC regulations, including CFTC Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term 48.8, which outlines the conditions of registration.”

It added: “This regulation also permits the CFTC to impose any additional conditions it deems necessary, after appropriate notice and opportunity to respond. DME must also continue to fulfill each of the representations it made in support of its registration application.”

The CFTC previously issued an order permitting DME to offer direct access to US participants. In addition, the agency allowed NYMEX and CFTC-registered FCMs to hold DME customer positions and associated funds in US customer-segregated accounts in connection with NYMEX's clearing of futures and options on futures contracts traded on the DME.