HKEx revamp comes with LME deal
Hong Kong bourse hopes to make the most of the acquisition by creating new division and launching more yuan commodities products
Hong Kong Exchanges and Clearing has unveiled a new management structure following its takeover of London Metal Exchange.
The exchange would also launch more yuan-denominated commodities products as it moved to take advantage of the internationalisation of the currency, chief executive Charles Li Xiaojia said.
"Buying LME is a long-term strategic move for HKEx to step into commodities. We will launch more yuan-denominated commodities products to meet the hedging need of China, the largest commodities user worldwide," he said at a conference yesterday.
HKEx last month completed its £1.39 billion (HK$17.25 billion) acquisition of LME to branch into commodities trading. LME, the world's largest metal exchange that traded US$15.4 trillion worth of contracts in 2011, handles a range of metals from aluminium to copper and tin.
The exchange yesterday announced a series of senior executive changes, which Li said was needed for the development in the commodities market.
Martin Abbott, while remaining chief executive of LME, will also become co-head of HKEx's newly created global markets division, which will oversee the equities, fixed-income and currency businesses including LME.
The market development division has been dissolved and its head, Romnesh Lamba, will oversee the global markets division together with Abbott.
