The Intercontinental Exchange (NYSE: ICE), the leading operator of global exchanges and clearing houses and a provider of data and listing services, today announced its intention to launch a new Abu Dhabi Intercontinental Futures Exchange (ADX). Headquartered in Abu Dhabi National Oil Company (ADNOC), Murban crude futures trading.
On November 4, 2019, the Abu Dhabi Supreme Petroleum Council (SOC) announced the launch of a new pricing mechanism for ADNOC’s Murban crude. The existing mechanism, based on an official selling price, will be changed retroactively, and a new mechanism based on future pricing, market movement and contracts will be changed. Murban futures as a price indicator .. The Supreme Petroleum Council also adopted the deregulation of the current destinations restrictions on sales of crude “Murban”. With the support of ADNOC, Murban crude futures approved by the Board will be traded on the Abu Dhabi Intercontinental Futures Exchange.
The Abu Dhabi Intercontinental Futures Exchange (ADX) was established on the Abu Dhabi International Financial Exchange (ADX) – the international financial center that applies English common law in all its legal and regulatory procedures – and has been approved by the Abu Dhabi Financial Market Regulatory Authority to operate as a recognized investment exchange.
Following regulatory approval, clearing of contracts traded on the Abu Dhabi Intercontinental Futures Exchange will take place at the ICE Clear Europe global clearing houses, as well as other contracts traded on the ICE such as Brent, WTI and Dubai. Platts’ and low sulfur gas oil, allowing customers to take advantage of the associated compensation margin and enhance capital efficiency.
The Abu Dhabi Intercontinental Futures Exchange (ICE) and the ICE Clear Europe clearing house are working to obtain the approval of the relevant regulatory and legal authorities and then begin trading in the first half of 2020.
His Excellency Dr. Sultan bin Ahmed Al Jaber, Minister of State and Chief Executive Officer of Abu Dhabi National Oil Company “ADNOC” and its group of companies, said: “The wise decision of the Supreme Petroleum Council to launch a new mechanism for pricing Murban Abu Dhabi crude and amend the terms of sale and the announcement of the Intercontinental Exchange to launch a stock exchange. New in Abu Dhabi is a strategic move that marks a historic change in the Murabaan pricing and trading mechanism. The launch of the Abu Dhabi Intercontinental Futures Exchange will further strengthen Abu Dhabi’s status as a global energy hub and support ADNOC’s ongoing paradigm shift in its efforts to become a forward-looking energy company. ‘
HE Ahmed Bin Ali Al Sayegh, Minister of State and Chairman of the Abu Dhabi Global Market, said: “We are delighted to have chosen the Abu Dhabi Global Market as a home for Murban futures and to provide support to the Intercontinental Exchange and ADNOC in launching this project, which represents a new development in the energy sector. “We would like to take this opportunity to welcome ADIEC as an important international exchange promoting the diversity of the business community in the Abu Dhabi Global Market.”
Jeff Speicher, Chairman and Chief Executive Officer of the Intercontinental Exchange and Chairman of the New York Stock Exchange, said: “The IE was established with a clear vision to create an open and transparent electronic market for energy products trading and trading. Next year, Murban futures will be traded alongside the world’s most important crude oil standard, allowing a wider group of investors to trade Murban crude and hedge on a transparent and regulated exchange. ”
Murban futures contracts traded on the Abu Dhabi Intercontinental Exchange are to be treated as physical delivery contracts on a FOB basis, with delivery in the emirate of Fujairah in the UAE.
Murban is a high-quality, light and low-sulfur crude produced by ADNOC, which has a daily production of about 3 million barrels per day, of which about 1.7 million barrels of Murban crude.