HKEx board plans LME strategy
Top exchange officials are in London to work out how to boost commodities trading at home
Hong Kong Exchanges and Clearing's board will meet in London today to map out future strategies for the London Metal Exchange after coming under intense criticism for failing to promote commodities trading in Hong Kong.
HKEx bought the LME, the world's largest metal exchange, for £1.39 billion (HK$17.31 billion) in December to diversify its business with commodities trading in the face of lower stock-market turnover and fewer new listings.
"The board of directors will definitely work on ways to help HKEx and the LME to work more closely and to seek ways to promote commodities trading in Hong Kong," an exchange source said. "HKEx will introduce more new products and services to achieve that goal."
The source said all 13 directors had gathered in London to attend the annual LME Week and meet metal traders and newly appointed LME chief executive Garry Jones.
Jones said on Monday that the LME would not move from London, but would develop business there and in Hong Kong.
While buying the LME has boosted HKEx's profits, the deal has failed to achieve the government's bigger mission of developing commodities trading in Hong Kong. Six years ago, the government urged HKEx to study the launch of oil and gold futures. It agreed to launch gold futures in 2008, but that has been a failure, with no turnover this year.