Hong Kong Exchanges and Clearing Limited (HKEX) announced today (Monday) the introduction of six US dollar-denominated London Metal mini futures contracts – aluminium, zinc, copper, nickel, tin, and lead. These will provide additional options for investors with exposure to base metals denominated in US dollars in the Asian time zone and complement HKEX’s existing RMB futures products.
“The launch of the USD London Metal Minis is part of our strategic ongoing commitment to expand London Metal Exchange (LME) trading in the Asian time zone,” said Dennis Zhang, HKEX's Head of Commodities Development.
“We look forward to exploring extending the connectivity with Qianhai Mercantile Exchange (QME) and LME in order to fully capture the potential upside of China’s internationalisation.”
In order to encourage participation from LME members and their clients with the launch of the new USD London Metal Mini Futures, Hong Kong Futures Exchange Limited (HKFE) is also pleased to announce the reintroduction of a reciprocal membership arrangement (RMA) in conjunction with LME. Under this reciprocal arrangement, the LME and HKFE will waive their respective first year’s annual subscription and application processing fees for new applicants who already hold a membership or participantship at either one of the Exchanges.
The reintroduction of RMA is aligned with HKEX’s strategy for developing its commodities business, including the launch of USD Minis and other commodities products that may have synergies with the LME products. Details of the RMA are available in this circular
Hong Kong Exchanges and Clearing Limited (HKEX) is one of the world’s major exchange groups, and operates a range of equity, commodity, fixed income and currency markets. HKEX is the world’s leading IPO market and as Hong Kong’s only securities and derivatives exchange and sole operator of its clearing houses, it is uniquely placed to offer regional and international investors access to Asia’s most vibrant markets.
HKEX is also the global leader in metals trading, through its wholly owned subsidiaries, The London Metal Exchange (LME) and LME Clear Limited. This commodity franchise was further enhanced with the launch of Qianhai Mercantile Exchange, in China, in 2018.
HKEX launched the pioneering Shanghai-Hong Kong Stock Connect programme in 2014, further expanded with the launch of Shenzhen Connect in 2016, and the launch of Bond Connect in 2017.