The Dubai Financial Services Authority (DFSA) announced today that the New York Mercantile Exchange Inc. (NYMEX), and its subsidiary, Commodity Exchange Inc. (COMEX), have each been granted the status of Recognised Bodies within the Dubai International Financial Centre (DIFC).
Mr. David Knott, Chief Executive of the DFSA, said: “This recognition will enable both NYMEX and COMEX to provide direct access to their commodities future markets in the United States by authorised customers operating within the DIFC.”
Mr. Knott added: “This is the first time that DFSA has granted such recognition to foreign exchanges. It is a further step in directly connecting Dubai with international markets under the umbrella of world class regulation. Our recent signing of Regulatory Protocols with NYMEX’s home regulator (the Commodity Futures Trading Commission of the United States) was a positive factor in granting this recognition.”
The Dubai Financial Services Authority (DFSA) is a central component of the Dubai International Financial Centre (DIFC), a new financial centre established to position Dubai as a recognised hub for institutional finance, and the regional gateway for capital and investment to the Middle East.
The DFSA is an independent, integrated regulatory authority responsible for the regulation of all financial and ancillary services conducted in or from the Centre, including asset management, banking, securities trading, Islamic finance, re-insurance, and an international financial exchange. The DFSA has been created using principle-based primary legislation modeled closely on that used in London and New York, and the DFSA regulatory regime operates to standards that meet or exceed those applying in the world's major financial centres.
Mr. David Knott was appointed Chief Executive of the DFSA on May 21, 2005. He is a former Chairman of the Australian Securities and Investment Commission and was Chairman of the Technical Committee of the International Organisation of Securities Commissions (IOSCO).
NYMEX and COMEX are commodities Futures Exchanges located in New York. NYMEX is predominantly an energy exchange (it is the worlds largest by contract value) whereas COMEX is predominantly concerned with trading metal products. The most well know product traded by NYMEX is the West Texas Intermediate oil futures contract.
Both Exchanges are subject to regulatory oversight from the Commodities Futures Trading Commission (CFTC) in the United States. DFSA has entered into a Regulatory Protocol with the CFTC.
NYMEX and COMEX will provide access to their markets from the DIFC remotely via the Internet. Pursuant to the DFSA Rule Book (Recognition Module) Recognised Bodies are exchanges which carry on Financial Services in or from the DIFC without having physical presence in the DIFC.
