Record Volume Growth at Dubai Mercantile Exchange, Still Lags CME & ICE

Earlier this year, the Battle of the managed futures conglomerates (CME vs. ICE) made an interesting turn.  As we noted in a previous post, WTI Crude Oil future contracts were taken over by Brent contracts on the CME’s New York Mercantile Exchange. This is important to note because WTI was the preferred crude oil contract around the world, and primarily traded only on the CME, giving them the leg up they needed.  For those of you who are new to our blog, you’re probably wondering , what does that mean for the exchanges? You lose liquidity; you lose the enticement from investors.

But there’s another Exchange that is making headlines in the managed futures world, The DME. The Dubai Mercantile Exchange just came off a record trading volume this past month at 6,978 ADV. To put that in perspective, that’s a 9% bump from their previous record, and a 32% bump compared to June’s numbers last year. If you haven’t heard a lot about the DME in the past, there’s a reason; it’s only been around for eight years.

So what does this mean for the international battle between the CME and the ICE? Well Goldman Sachs, JP Morgan, and Morgan Stanley started becoming shareholders, and not long after the CME bought out the CME. With those great numbers, the CME couldn’t help but publicize the event, with a Q&A article on the CME’s website.

Naturally, this strengthens CME’s position to re-establish themselves as the global managed futures exchange. Plus, CME is going by the motto, “If can’t beat the competition, buy a smaller competitor and use them to supplement your power. “  AKA Earlier this year, the CME invested capital into the DME in hopes of establishing the Oman crude oil futures contract (which is the primary contract for the Middle East and Asia).

The CME is clearing the business so they want it to grow. Plus the contract is tied to a separate production pool so it won’t necessarily take away from WTI unless the major oil industry players decide that DME is a better benchmark for crude than the CME.

As for the CME and ICE showdown, here’s an updated chart as to where they stand midway through the year.

(Disclaimer: past performance is not necessarily indicative of future results.)

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Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

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