(MENAFN - Muscat Daily) DME, the Middle East's premier international energy futures and commodities exchange, launched a new trading mechanism Trade at Marker (TAM) on Tuesday, July 1, for customers of the DME Oman crude oil futures contract.
The TAM trading mechanism will allow DME customers to buy and sell oil at a price directly linked to DME's 12:30pm marker price. The average of the month's marker prices on the DME is the basis of the crude oil export price of Oman and, making the DME Marker Price one of the world's key energy benchmarks.
The ability to trade the marker price directly will be useful for investors who want exposure to Oman and Dubai's crude oil export price, but who may not necessarily want to trade during DME's settlement window. TAM can be traded on a daily basis for the front three months of the DME Oman crude oil contract.
The mechanism will be particularly useful for asset managers who want exposure to DME Oman without needing to participate in the price-formation process or for refiners that would like to guarantee that their procurement costs are as close as possible to the official selling price (OSP) of Oman crude oil, a press release said on Tuesday.
Christopher Fix, chief executive officer of DME, said: ''At a time when price volatility has returned to the market, a trading mechanism like Trade at Marker that provides greater certainty in execution will be very attractive to some traders.''