The Dubai Mercantile Exchange asked CFTC to ease margin-calculation rules

The DME has asked the CFTC to ease margin-calculation rules for traders on its markets, cutting trading costs for its flagship Oman Sour Crude contract. The DME’s sour crude futures contract, launched in June 2007, is among a host of products aimed at establishing a pricing mechanism for the heavier crude oil produced in the Middle East. The CFTC rule requiring customer margin levels to be calculated on a two-day holding period may be making it about 30% more expensive for investors to trade Oman crude oil contracts versus global benchmark crude contracts.

About The Author

Felix Shipkevich

Felix Shipkevich is a Manhattan-based attorney and general counsel for Shipkevich Law Firm. He has extensive experience working with the CFTC and NFA on registration, compliance, and enforcement issues for CPOs, CTAs, FCMs, IBs, and RFEDs. Felix also practices intellectual property and corporate governance law.