Dubai Mercantile Exchange (DME) will launch two new financially settled crude oil contracts in a move that is set to irritate energy rival Intercontinental Exchange (ICE).
While DME’s plans, revealed on February 18, to launch a financially settled Oman crude oil contract came as little surprise, its decision to launch a financially-settled Brent crude oil contract, settled on the equivalent contract offered by ICE, was unexpected, especially given the long legal battle between one of DME’s parent companies, New York Mercantile Exchange (Nymex) and ICE on the very issue of settlement.
The launch of the financially settled oil contracts could be potentially damaging for ICE, who already compete with DME in the sour crude oil market. While DME has recorded...