The New York Mercantile Exchange, the world's biggest energy bourse, hopes to sign a deal with the Dubai government in the next few weeks to set up a commodity market there, Nymex president James Newsome said yesterday.
The new exchange, more than a year in the works, would start out listing crude oil and most likely gold contracts, possibly on an electronic platform, he said. This is a departure from Nymex's mainstay US market, dominated by open-outcry pit trading.
"We have yet to designate a day for the official signing," Newsome told a briefing in Japan. "We have been in discussions with the government of Dubai, trying to determine a date that works for both sides."
Newsome said Nymex already had agreed most details with the Dubai side, although the exact lineup for new contracts on the exchange would only be decided late this year or early next year.
Oil traders expect the exchange to list a contract for the main Middle East crude oil benchmark crudes, Dubai or Oman, both sour grades that now see only limited trade on an over-the-counter basis.
The lack of a liquid which makes up nearly half the crude consumption in Asia, is a major deterrent for consumer or producer hedging.
The Dubai contract now appears to be Nymex's main focus in Asia, as a year of fruitless talks with Singapore Exchange Ltd (SGX) have ended, the Singapore exchange said on Thursday.
LEADING AUCTION HOUSE
Christie's opens representative office in DMCC
Christie's, the world's leading auction house, has chosen the Dubai Metals and Commodities Centre at the site of its maiden office in the Gulf.
"The opening of a representative office reflects the growing importance of Dubai as a cultural centre for the arts and jewellery industry and the increasing interest in collecting items such as this throughout the GCC region," said Ahmad Bin Sulayem, COO of DMCC.
The move by renowned companies such as Christie's, the first international auction house to open an office in the Gulf, to set up base in Dubai is providing a major impetus to the jewellery trade and culture in the region. "We are delighted to extend our activities to the GCC through the opening of a non-selling office in Dubai. We hope to play a significant role in realising the Gulf's potential as a new arts and cultural centre," said Edward Dolman, CEO of Christie's International.
Christie's Dubai office, in the purpose-built Almas tower, will provide access to art experts and enthusiasts in the region, giving them information on buying and selling works of art at auctions and will act as a local gateway to the international art market.
