Hong Kong Exchanges and Clearing Limited (HKEx), HKEx Group companies the London Metal Exchange (LME) and LME Clear Limited, China Merchants Group Limited (CMG) and China Merchants Securities Co. Limited (CMS), signed a memorandum of understanding (MOU) on 22 October 2014 for a strategic alliance in product development and related services for market users.
The signing ceremony was held in London in the presence of HKEx Co-Head of Global Markets Romnesh Lamba; LME Chairman Sir Brian Bender; Dr Yu Liming, Executive Vice President of CMG; Charles Feng, General Manager of the Business Development Department of CMG, CMS Chairman Gong Shaolin; and CMS CEO Wang Yan. Other senior representatives from HKEx Group and CMG companies also participated in the ceremony.
"This MOU is an important step for HKEx Group and China Merchant Group companies as we look to develop new products and services to complement our existing businesses," said Mr Lamba. "The MOU also demonstrates our continued commitment to expanding the LME's business and user base in Asia."
"This agreement with CMG and CMS marks the beginning of our collaboration in exploring initiatives such as LME warehousing in Asia and the development of new RMB denominated products," added Matthew Chamberlain, the LME's Head of Business Development.
"The MOU entered into today marks a critical new milestone for our overall cooperation in the future with particular focus on examining the feasibility of establishing LME listed warehouses, by leveraging the unique strength of China Merchants Group in the logistics and warehousing sector in China and the strategic role of LME as the world’s leading base metals trading marketplace," said Dr Yu.
"The signing of this MOU marks the beginning of China Merchants Securities's strategic collaboration with the LME to explore the provision of cross-border commodity derivatives products as well as other initiatives in order to support the globalisation of RMB and reinforce the strategic proposition of London as a key offshore RMB centre," said Mr Gong.
"We see this strategic cooperation as an important step to implement China Merchants Group's strategy of integrating its industrial and financial services capability," added Mr Wang, CEO of CMS.
From left to right: Bernie Kennedy, LME Clear Head of Business Development; Trevor Spanner, LME Clear Chief Executive; Romnesh Lamba, HKEx Co-Head of Global Markets; Sir Brian Bender, LME Chairman; Dr Yu Liming, CMG Executive Vice President; Wang Yan, CMS CEO.
About HKEx
HKEx is one of the world's largest exchange operators by market capitalisation. It runs Hong Kong's securities and derivatives markets, is the frontline regulator of companies listed in Hong Kong, and provides clearing and settlement services for exchange-traded and over-the-counter products through its clearing houses. It is also an equal joint-venture partner with the Shanghai and Shenzhen stock exchanges in China Exchanges Services Company, which develops cross-border indices based on products traded on the three markets.
About the London Metal Exchange
The London Metal Exchange, a member of HKEx Group, is the world centre for industrial metals trading.
More than 80 per cent of global non-ferrous metals business is conducted on the exchange's three trading platforms: LME select (electronic), the Ring (open outcry) and the 24-hour telephone market. The world’s metal community uses the LME to trade futures, options, and the exchange’s latest contract, LMEswaps, to hedge against adverse price movements –prices which are discovered on LME’s markets and used as the global benchmark.
Participants can trade aluminium, copper, tin, nickel, zinc, lead, molybdenum, cobalt, steel billet and two regional aluminium alloy contracts. In 2013, 171.1 million lots were traded on the LME, the equivalent of 4.0 billion tonnes and US$14.6 trillion in notional value.
At the close of the year, 7.4 million tonnes of material was held on LME warrant in 732 storage facilities across 37 locations internationally.
For further information, please visit www.hkexgroup.com.
Ends