Dubai Mercantile Exchange (DME) has announced that Singapore-headquartered OCBC Bank has become the latest global banking institution to receive approval for issuing Letters of Credit (LCs) for trading on the Exchange.
The decision enables OCBC Bank – ranked among the world’s top 3 strongest banks in 2015 by Bloomberg Markets – to issue LCs directly from Singapore on behalf of its clients to guarantee deliveries of Oman Blend crude oil through the DME.
“Providing our Asian customers with reliable access to finance closer to home is key to our ongoing pursuit to create a more robust and efficient trading ecosystem,” said Owain Johnson, Managing Director of the Dubai Mercantile Exchange. “To be able to build liquidity and confidence, DME recognizes that it is important to develop a diverse roster of top international banks that are empowered to issue LCs directly from Singapore, so that customers in Asia can use banks close to home to guarantee their crude oil deliveries. We are delighted to have OCBC Bank join us in this important initiative.”
Ng Chuey Peng, Head of Global Commodities Finance, OCBC Bank said, “We are pleased to participate in this initiative which will pave the way for more simplified processes for our clients trading on DME. We have noticed the growth in DME trading volumes through the years, and we are very excited to have the opportunity to more fully serve the needs of our mutual customers and benefit from the Exchange’s continued robust growth.”