Home | FAQs | Trading on the DME

Last Updated: 11/11/2008

• About the DME
• Membership
• Trading on the DME
• DME Oman Crude Oil Futures Contract (OQ)
• DME Brent Crude Oil Financial Contract (ZO)
• DME Oman Crude Oil Financial Contract (ZG)
• Information Technology
• Legal, Counterparty Risk, Clearing & Settlement

Q. What products does the DME offer?
A. The DME lists the DME Oman Crude Oil Futures contract, which is the world’s first physically delivered Middle East sour crude oil futures contract, and is increasingly seen as the third global benchmark for crude oil. Additionally, the DME lists two financially settled contracts: the DME Brent Crude Oil Financial Contract and the DME Oman Crude Oil Financial Contract. Areas of interest in the future may include further energy or metals contracts. Maintaining constant communication with global commodities traders and industry professionals, the DME undertakes extensive market viability studies, customer readiness surveys and regulatory approvals processes prior to launching any new contracts.

Q. Do you have to be a Member to trade on the DME? 
A. No, non-Members can trade directly on the DME as a Guaranteed Customer, so long as access to the Exchange is in compliance with the jurisdiction in which they are trading.

Q. How can I become a Guaranteed Customer?
A. A Guaranteed Customer is not a Member but rather any customer that trades on the DME and is guaranteed by a DME Clearing Member. In order to be a Guaranteed Customer, you need to have an account with a Clearing Member. Once this is set up, your Clearing Member can facilitate electronic access to the DME, or else you can trade via one of our certified Independent Software Vendors (ISV).

Q. What are the DME Trading Hours?
A. The DME markets trade electronically, opening at 6:00 PM New York time and closing at 5:15 PM New York time the next day, Sunday to Friday. These timings mirror NYMEX’s trading hours.

Singapore is 13 hours ahead of standard time in New York and Dubai is 9 hours ahead. The time difference is reduced by one hour when Daylight Savings Time is in effect in New York. Neither Dubai nor Singapore observes Daylight Savings Time.

Q. When does the DME Oman Crude Oil Futures Contract settle?
A. A daily settlement price is published by the DME for the Oman Crude Oil Futures Contract at 1630 Singapore time (1230 in Dubai, 0330 or 4:30 in New York the same day), which is the current close of the Singapore cash market.

The DME also publishes a "post close" price at 1430 in New York (0230 or 0330 in Singapore the following day) for the DME Oman Crude Oil Futures Contract which coincides with the settlement prices of the NYMEX light sweet crude oil futures contract and other key energy markets. The DME post-close price is used by the Clearing Members in marking positions to market and determining margins.

Q. Are there any days in the year on which a daily settlement or post close price will not be published for the DME Oman Crude Oil Futures Contract?
A. Yes. The DME is closed for trading on New Year’s Day, Good Friday and Christmas Day, therefore no daily settlement or post close price will be published on these days. There are six additional non-banking New York holidays where no margining (post close) will occur, but there will be a daily settlement price for the DME Oman Crude Oil Futures Contract at 16:30 Singapore time.  Please click  here to view the Holiday Calendar. 

Q. What constitutes a Block Trade?
A. A block trade is a privately negotiated futures transaction executed off the Exchange. In order to be considered a Block Trade, the trade must satisfy the following conditions:

• Minimum size, currently set at  of 100 lots
• Reported to the Exchange within 5 minutes
• Price is fair and reasonable in light of the size of the block trade and other transactions done in the same contract at the same time
• Orders cannot be aggregated
• Must be specified as a “block” by the customer in advance
• Accurate records are kept

Q. How do I execute a Block Trade?
A. A block trade is executed either through private negotiations or with the help of an intermediary where the intermediary will enter the trade details into ClearPort® Clearing on behalf of the counterparties. Alternatively the NYMEX ClearPort® Facilitation desk which may be reached on telephone number +1 866 246 9639 can also submit the trade to ClearPort® Clearing on your behalf.

Q. What is ClearPort® Clearing?
A. ClearPort® Clearing is an electronic gateway which allows voice brokers to submit trades to the exchange for clearing in real-time.  Please see the following site for further details -  http://www.nymex.com/cpc_overview.aspx

Q. Can you submit an EFS/EFP to the DME?
A. Yes you can, subject to meeting the requirements contained in the DME Rulebook, Rule 6.24 and Member Notice 08-044.Aan EFS/EFP can be submitted through ClearPort ®Clearing which you can register for via the NYMEX website:  https://www.services.nymex.com/cpc/

Q. What do I do if I have an error trade?
A. Please call the NYMEX Customer Service for DME Direct™ Trading Support on +1 800 438 8616 immediately or at least within ten minutes of the error trade occurring. More information about error trade procedures may be found in the DME Rulebook, Rule 6.16.

Q. Where can I obtain historical data for the DME?
A. DME historical data are available on http://www.dubaimerc.com/historical.aspx.