The London Metal Exchange may have a Hong Kong member soon. It also plans to launch a clearing house and new commodity products in the city next year.
The announcement of the world's largest metal exchange's expansion plans in the city came as Tianjin-based Bohai Commodity Exchange introduced its online trading platform to Hong Kong companies yesterday.
A spokeswoman for Hong Kong Exchanges and Clearing, which owns the LME, said: "HKEx and the LME focus on their priorities in developing the commodities business. It is our general principle not to speculate on business conducted at other exchanges."
HKEx bought the LME a year ago to develop commodities trading and diversify from stock and financial futures trading.
The LME said in a member circular that it was considering a membership application from Hong Kong-listed Lee Kee Group, which could become its first Hong Kong member. Established in Hong Kong in 1947, Lee Kee is an integrated supply-chain company specialising in non-ferrous metals.
The LME and HKEx yesterday also announced the appointment of a nine-member board for LME Clear, to be launched in September. The LME now has a third party to clear its contracts and the new clearing house would allow it to offer more new products and services next year. New futures would include iron ore and coal in the second half of next year, Romnesh Lamba, a co-head of HKEx's global markets division, said last month.
Lamba is one of four executive directors appointed to LME Clear. The others are LME Clear chief executive Trevor Spanner, HKEx head of global clearing Gerald Greiner and LME chief executive Garry Jones.
The five independent non-executive directors are lawyer Richard Thornhill, accountant John Harrison, investment banker Marye Humphery, academic Nat le Roux and banker Marco Strimer.
HKEx also announced a senior executive awards scheme yesterday that will see chief executive Charles Li Xiaojia offered HKEx shares valued at HK$4.33 million for the three years to 2015 and HK$8.65 million for the three years to 2016.