Playing Field to under go huge change!https://www.commodityonline.com/news/HKMex-set-for-trading-debut-on-May-18-with-1-kg-gold-futures-38544-3-1.html
HONG KONG (Commodity Online): The Hong Kong MercantileExchange (HKMEx) has received authorisation from the Securities andFutures Commission and will make its trading debut on May 18, 2011 withthe 1-kilo gold futures contract offered in US dollars with physicaldelivery in Hong Kong.
The ATS authorisation grants HKMEx theright to offer market participants, through its member firms, the use ofits state-of-the-art electronic platform to trade commodities. TheExchange will begin trading with at least 16 members including some ofthe world’s largest financial institutions as well as severalwell-established brokerages in Hong Kong.
“We are very excitedabout this historic day. It allows us to establish a liquid and vibrantinternational commodities exchange based in Hong Kong, linking Chinawith the rest of Asia and the world,” said Barry Cheung, chairman ofHKMEx. “Global demand for core commodities has in recent years beendriven by Asia, especially China and India. However, market participantsin the region have had to rely on Western exchanges for pricediscovery, bearing the basis risk exposure in the process. Our newplatform will offer Asia a bigger say in setting global commodityprices. It will also enable market participants to more actively managetheir risk exposures, using products tailored to Asian market needs.”
HKMEx’sbroking members at launch include BOCI Securities Ltd, CelestialCommodities Ltd, CES Capital International Co. Ltd, Chief CommoditiesLtd, ICBC International Futures Ltd, Interactive Brokers LLC, KGIFutures (Hong Kong) Ltd, MF Global Hong Kong Ltd, Morgan Stanley HongKong Securities Ltd, OSK Futures Hong Kong Ltd, Phillip Commodities (HK)Ltd, Tanrich Futures Ltd and TG Securities Ltd. Its three clearingmembers are Interactive Brokers (UK) Ltd, MF Global UK Ltd and MorganStanley & Co International Plc.
Trading hours will runbetween 0800 to 2300 Hong Kong Time, overlapping commodity markets inEurope and the US. “This helps to promote cross-continent trading andboost liquidity,” said Albert Helmig, president of HKMEx. “It alsooffers participants extensive opportunities for hedging, arbitrage andeffective risk management.”
In the pipeline are standardisedproducts which will either be physically or financially settled,covering precious and base metals, energy, agriculture and commodityindices.
HKMEx is uniquely positioned to take advantage of theliberalisation of the renminbi in Hong Kong, according to a pressrelease. “China’s pilot scheme for the settlement of overseas directinvestments in the Chinese currency has not only increased cross-bordertrade settlement and liquidity, but also created a strong demand forrenminbi-denominated investment instruments,” said Mr Helmig.
Alltransactions on HKMEx will be cleared through London-based LCH.Clearnet– a leading independent clearing house serving major internationalexchanges. HKMEx has attracted shareholders from around the globeincluding China’s ICBC and COSCO Group as well as Russia’s En+ Group,among others.
“We are very fortunate to have such a strongshareholder base in addition to a board of directors who are of thehighest calibre in their own fields. Our management experience, togetherwith cutting-edge technology, market focused products, and Hong Kong’sstrategic location and infrastructure will ensure HKMEx a promisingfuture,” said Mr Cheung