Thursday, February 23, 2012

CME Group to double stake in Dubai exchange

The CME Group said it is doubling its stake to 50 percent in the Dubai Mercantile Exchange, a hub of trading for oil contracts in the Persian Gulf.


The Chicago-based CME Group said its New York Mercantile Exchange division is raising its stake in the Dubai exchange from 25 percent, according to a statement released Tuesday.

The Sultanate of Oman's sovereign wealth fund also is increasing its stake to 29 percent from an undisclosed level.

The price of the increased investments were undisclosed nor did the statement say who the sellers are.

The statement said the new investment will help the Dubai exchange develop new trading products and services. Trading volumes increased 19 percent on the Dubai exchange last year, with more than 145 million barrels of crude oil delivered.

The rest of the Dubai exchange is owned by a host of regional investment funds and international corporations.

A subsidiary of the Dubai Holding Investment Group, Tatweer, owns 9 percent. The remaining 12 percent is held by a group including Vitol, Shell, JPMorgan, Morgan Stanley, Goldman Sachs and Concord Energy, according to the news release.

The CME Group manages one of the world's largest groups of trading platforms, with exchanges for trading oil contracts, credit derivatives, gold and a wide variety of other commodities.

Its subsidiaries include the NYMEX and the Chicago Board of Trade, or CBOT.

yahoo.com

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