ADIPEC 2019: Inside ADNOC CEO's announcement of Murban exchange on ICE - Business Insider

In order for the futures to be transacted widely, Intercontinental Exchange will launch ICE Futures Abu Dhabi, which will be known as IFAD.Based on comments made by Al Jaber, it's clear both he and those at ICE view Murban futures as a potential third major global crude benchmark — something that can slot in alongside Brent and WTI. He also provided the line of thinking from ICE's point of view.Williams laid out three key reasons why the partnership makes sense:1) Abu Dhabi and the United Arab Emirates have long proven to be effectively governed"Within the region, you have the perfect combination of a location that has rule of law and a regulatory system that's very familiar to the global community," Williams told Business Insider.2) ADNOC made a key change in its distibution approach in order to get the deal done"You've got a national oil company in ADNOC that's extraordinarily strategic and forward-thinking in the sense that it's now willing to go destination-free, which is a key component for benchmarking," Williams said.3) The existence of a Murban exchange will make it much easier to hedge Asian oil risk"You have a global benchmark that is Brent, a US benchmark that is WTI, and now we're going to have an Asian benchmark at a comparable grade," he said.