Wednesday 22 February 2012

CME Group to Double Its Stake in Dubai Commodities Exchange - WSJ.com

CME Group Inc. said it will double its stake in the Dubai Mercantile Exchange to 50%, eying expansion of a key oil-futures contract at a time when rival exchanges are reassessing their role in the Gulf region.

CME will pay an undisclosed sum to lift its stake despite still-small trading activity on the DME platform, which the Chicago-based exchange operator of the New York Mercantile Exchange has backed as providing a third global benchmark for crude-oil trade targeting suppliers in Asia.

The investment, disclosed Tuesday, also underscores major exchange groups' refocused efforts on building ties with smaller, foreign-based market operators after a year of megamerger efforts fell apart amid regulatory and nationalistic barriers.

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