The Dubai Mercantile Exchange’s new chief executive officer said he aims to tap Persian Gulf financial markets and banks for capital to help fund and expand trading in crude oil and refined products.
Christopher Fix, a former BNP Paribas SA executive who joined the DME last month, said the exchange has spoken with “half a dozen” regional lenders about ways to facilitate funding for energy trading. The aim is “to get Arab banks to finance Arab oil,” he said at an energy forum in Dubai today.
The DME, the platform for trading in the Oman crude futures contract, does about $1.5 billion in oil transactions a month, mainly financed by European or U.S. lenders, Fix said. European and U.S. banks tightened lending after the global financial crisis, adding to constraints on some trading companies at the same time as higher commodity prices made it more expensive to purchase oil and refined products.
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