Commodities broker Newedge eyes world's fastest-growing market

International metal and commodities broker Newedge, a member of the London Metal Exchange, plans to expand in Asia.

Its director of Asian commodities trading, Richard Fu, said Hong Kong Exchanges and Clearing's recent acquisition of the LME would enhance the broker's expansion plan.

HKEx completed its acquisition of the world's largest metal exchange for £1.39 billion (HK$17.4 billion) last month. The LME has an 82 per cent market share of global metal futures transactions.

"It is a win-win situation. The tie-up of HKEx and LME will benefit both parties," Fu, who is based in London, said in a telephone interview. "HKEx has experience and connections in [mainland] China. The deal will allow the members of LME, including Newedge, to have better access in Asia, particularly [mainland] China. It will help us get more new business opportunities in this region."

For HKEx, he said the LME link-up would allow it to expand into commodities trading.

Newedge is a joint venture equally owned by financial group Credit Agricole CIB and Societe Generale. The firm is one of the world's top commodities and base metals brokers.