CME Group has been experiencing a massive upswing in trading from the Middle East, as hedge funds are now moving into Dubai and Abu Dhabi, pushing activity to new highs. The average daily volume from CME in the region jumped 16% this year, hitting 193,000 contracts per day, while hedge fund trading itself has surged by about 30%, according to data released by the exchange on Wednesday.

Julie Winkler, chief commercial officer of CME, called the hedge‑fund rush “pretty consequential,” saying the Middle East is now “our fastest‑growing segment by far.” Julie added that CME’s expansion follows its clients’ footprints, as more funds establish bases in the Gulf to be closer to the region’s sovereign wealth funds.

The Middle East still represents only a single‑digit percentage of the global trading activity of CME, which is roughly the same as Hong Kong, but the momentum is what matters. CME is embedding itself deeper in the region, setting up a business‑development office inside the Gulf Mercantile Exchange (GME) office in Dubai, where it already owns.

CME trading on the rise as hedge funds move operations

Wall Street names are also showing up, with Davidson Kempner, which manages $37 billion, opening an office in Abu Dhabi. They join firms like Marshall Wace and Brevan Howard, with the latter already running a team of more than 100 staff there. Their logic is that being on the ground gets them closer to cash‑rich funds that control hundreds of billions, instead of sending teams back and forth from London or New York.

The Dubai International Financial Center (DIFC) said in July that it hosts 85 hedge funds, with 69 managing over $1 billion each. The Abu Dhabi Global Market (ADGM) doesn’t publish data, but it noted a surge in fund registrations less than two months ago. Julie said the region’s appeal comes from a combination of a tax‑friendly setup, an attractive lifestyle, and a timezone that connects Asian, European, and U.S. trading hours.

She added, “They’re wanting to build out those operations to a pretty significant level. We’re seeing complete pods of some of these hedge funds moving to the region.” CME’s leadership views this as a natural extension of its customer strategy. “Both the asset management and the hedge funds flowing into Dubai were critical,” Julie said, adding that CME is simply going where its trading community already operates.

Gulf stock market strengthens

Meanwhile, Gulf stock markets strengthened on Tuesday, buoyed by expectations that the U.S. Federal Reserve, under President Donald Trump’s administration, will cut rates in the coming months. Traders are pricing a 99% chance of a 25‑basis‑point cut in October and a 94% chance of another in December. Those moves matter in the Gulf, where most currencies remain pegged to the U.S. dollar, making Fed policy a local event.

Dubai’s DFM index rose 1.4%, lifted by a 3% gain in Emaar Properties and a 3.8% rally in Emirates NBD. The bank is in advanced talks to buy a stake in India’s RBL Bank, Reuters reported, citing people familiar with the deal. Anyway, Abu Dhabi’s FTFADGI index surged by 0.1%, while Saudi Arabia’s TASI index ended the day flat. CME Group’s own stock has surged by 17% year-to-date, beating both Intercontinental Exchange (ICE)’s 6.3% and the Nasdaq’s 15% surge.

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