Hong Kong Exchanges and Clearing Ltd is the holding company for the city’s stock exchange, futures exchange and clearing company. Its market capitalisation made it the world’s biggest listed bourse as of the end of 2012. In December 2012, the HKEx clinched the US$2.2 billion takeover of the London Metal Exchange, the world's biggest marketplace for industrial metals.
HKEX says new commodities contracts to be cash-settled products
Hong Kong Exchanges and Clearing (HKEx) chief executive Charles Li said on Tuesday that new commodities contracts to be introduced by the exchange would initially be cash-settled products.
“We are going to start with cash-settled products and over time... we will develop physically deliverable capabilities,” Li said in a speech to a conference in Hong Kong.
“Most likely the contract we will look at in Hong Kong will be cash settled, will be monthly and will be different sizes from the current contract,” he added.
Li said earlier this year that HKEX, which bought the London Metal Exchange (LME) last year, will use the LME’s status to extend HKEX’s commodity platform into ferrous metals, such as iron ore, coking coal and energy.