Dubai Mercantile Exchange (DME), the international energy futures and commodities exchange in the Middle East, announced on Monday the approval of Nanhua USA as a clearing member.
A futures brokerage firm headquartered in Hangzhou, serving institutional, corporate and individual clients, Nanhua USA becomes the first China-headquartered Clearing Member of the DME.
The move assumes significance in light of the strong interest in DME among Chinese oil traders and the impending launch of a new crude oil futures contract by the Shanghai International Energy Exchange Corporation (INE).
The DME signed a Memorandum of Understanding (MoU) with the INE in 2014 to build a tighter relationship with its Asian customer base and to support the development of energy trading benchmarks within Asia.
As a clearing member, Nanhua USA will be entitled to clear and settle trades carried out by its regional and international customers on the DME.
“We are very pleased to have Nanhua USA join us as a Clearing Member” said Owain Johnson, managing director, DME.
“The DME Oman crude oil product has become a key benchmark for Asian traders due to its transparency and regulated price discovery mechanism.
“With energy trading becoming a key growth driver for countries along the crude oil corridor between the Middle East and Asia, the participation and backing of major financial players such as Nanhua will help support greater liquidity for our customers and allow DME to continue its expansion and growth momentum.”
David Luo, CEO, Nanhua Futures, said, “We are delighted to be building a relationship with the Middle East’s premier energy-focused commodities exchange at a time when it is receiving increasing interest from traders and global financial participants.”
“Nanhua USA’s decision to take a clearing membership of the exchange is a well-calculated move aimed at satisfying the growing appetite among Chinese customers for the DME Oman crude oil product.
“Besides, DME acts as an important gateway into several high-potential markets, and becoming a clearing member on the exchange allows us to scale up our operations in these markets and provide enhanced market access and trading opportunities to our customers,” he added.
