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DME Oman Crude Oil Futures Contract

Procedures For Determining the Settlement Price And Post Close Price

These are the Exchange's procedures referred to in Rule 6.26 of the Exchange's Rules for determining the Settlement Price and Post Close Price for the DME Oman Crude Oil Futures Contract.  Terms used in these Procedures that are defined in the Rules shall have the meanings given to them in the Rules.

Dubai Mercantile Exchange DME Oman Crude Oil Futures Contract Procedures For Determining the Settlement Price And Post Close Price These are the Exchange's procedures referred to in Rule 6.26 of the Exchange's Rules for determining the Settlement Price and Post Close Price for the DME Oman Crude Oil Futures Contract. Terms used in these Procedures that are defined in the Rules shall have the meanings given to them in the Rules. A. Daily Settlement Prices for DME Oman Crude Oil Futures Contracts

1- In these Procedures, the Closing Range in respect of a Trading Day means the price range set between the High and the Low occurring during the following time periods:

       (a) in the case of the final Trading Day of a Contract Month, the thirty (30) minutes ending
       at 16.30 (Singapore time); and

       (b) in the case of any other Trading Day in a Contract Month, the five (5) minutes ending at
       16.30 (Singapore time),

provided that (in each case) the Exchange may designate that a shorter period ending at 16.30 (Singapore time) shall be used for determining the Closing Range by publishing such period on its website.

2- The Exchange shall determine a Settlement Price for each Trading Day of a Contract Month of the DME Oman Crude Oil Futures Contract. The Settlement Price for each Trading Day of a Contract Month (including the last Trading Day of such Contract Month) which is the current Contract Month or:

       (a) which as of the opening of business for that Trading Day has at least ten per cent (10%)
       of the total open interest for all Contract Months of the Futures Contract; and

       (b) for which (on the basis of that Trading Day's Closing Ranges) fifteen per cent (15%) of
       the total Closing Range volume in that commodity across all Contract Months is done in that
       Contract Month,

shall be the average weighted price (AWP) rounded to the nearest minimum fluctuation, of all outright transactions in that Contract Month which occur in the Closing Range.

3- For Contract Months for such Futures Contracts which do not satisfy the criteria set out in paragraph A.2 above, the daily Settlement Price shall be determined based upon Spread relationships between and among Contract Months, as determined in the judgement of the Exchange with:

       (a) greatest weight given to Spread transactions executed late in the Trading Day in large
       volumes, and

       (b) lesser weight given to:

              (i) Spread transactions traded in lesser volumes;

              (ii) Spread bids and offers entered late in the trading day; and

              (iii) Spread transactions, and bids and offers from early in the trading day,

provided that, in any circumstance where the Exchange is considering bids and offers for Spreads transactions, it shall consider the mid-point of the best bid and best offer and not the individual best bid or best offer. In the event of a price spike in the Closing Range in any Contract Month where the daily Settlement Price is determined by AWP in accordance with paragraph A.2 above, the Exchange may disregard the daily Settlement Price for such spiked month in considering Spread relationships.

4- For the purposes of these Procedures, a price spike in the Closing Range shall have occurred if, in the sole discretion of the Exchange, a significant change in the Spread relationships between the "spiked month" and the Contract Months immediately preceding and following such month occurred during the Closing Range.

5- Notwithstanding the foregoing, no daily Settlement Price shall be established that would be lower than the best bid, or higher than the best offer that:

       (a) was for at least fifty (50) contracts for outrights or at least one hundred (100) contracts
       for Spreads in DME Oman Crude Oil Futures Contracts; and

       (b) had been posted with the Exchange and remained available for execution and unfilled for
       the final fifteen (15) minutes of trading before the Closing Range.

6- If any daily Settlement Price is inconsistent with Futures transactions that occurred during the Closing Range in other Contract Months of the same Futures Contract or with market information known to the Exchange, including, but not limited to:

       (a) bids or offers for outright transactions and Spreads that were unfilled during the Closing
       Range;

       (b) bids, offers or transactions in Strips; and

       (c) outright transactions executed prior to the Closing Range, the Exchange may establish a
       daily Settlement Price at a level consistent with such other transactions or market
       information and, in such event, the Exchange shall prepare a written record of the basis for
       any daily Settlement Price so established.

7- In the event that the Exchange:

       (a) establishes a daily Settlement Price in accordance with paragraph A.6 above; or

       (b) determines that a price spike in the Closing Range occurred, it shall prepare a written
       record of the basis upon which it established such Settlement Price.

B. Daily Post Close Prices for DME Oman Crude Oil Futures Contracts

8- In these Procedures, the Post Close Range in respect of a Trading Day means, the price range set between the High and the Low occurring during the five (5) minutes ending at 14.30 (New York time) provided that the Exchange may designate that a shorter period ending at 14.30 (New York time) shall be used for determining the Closing Range by publishing such period on its website).

9- The Exchange shall determine a Post Close Price for each Trading Day of a Contract Month of the DME Oman Crude Oil Futures Contract except the last Trading Day of a Contract Month. The procedures for determining the Post Close Prices for Contract Months of the DME Oman Crude Oil Futures Contract shall be the same as those set out at A. above for determining the Settlement Prices for the DME Oman Crude Oil Futures Contract except that references in A. above to the Closing Range shall be construed as references to the Post Close Range.

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