London Metal Exchange (LME) is exploring opportunities to strengthen ties with Asian exchanges, according to Metal Bulletin referring to senior market sources. LME explores the potential of both the launch of new and further development of existing contracts with «Asians».
Chapter opened the doors for business this month, the Singapore office LME Liz Milan said that «LME needs to determine its strategy in Asia and the collection of information, creating an overall picture of the region, especially China."
Market participants believe that the Singapore Exchange (SGX), Singapore Mercantile Exchange (SMX), the Hong Kong Mercantile Exchange and the Shanghai Futures Exchange (ShFE) are in the zone of interests of Asian representation LME.
According to one market observers, Asiaclear OTC clearing platform LME can provide access to markets, in which she is interested, such as iron ore market swaps and forward contracts for charter. «Asiaclear very successful. It is formed for the needs of the energy sector, but it also provides clearing iron ore swaps and freight contracts. And this is where the LME wishes to appear, therefore, it is interested, — the analyst said. — SGX — the strongest market in the region for a long time. He does not intersect with others, so that the connection with the LME have brought him and the London Stock Exchange in the new area. SMX is owned by Mumbai Financial Technologies, which is organized and operates the stock exchanges, including the Dubai Gold and Commodity Exchange, Indian multitovarnuyu Exchange (MCX), while SMX has not yet released to market their product. ««LME worked with MCX in the past — continues the analyst. — In 2005, she allowed MCX to use LME aluminum prices for the realization of their own futures. «
Another source indicates that the Hong Kong Mercantile plans to launch a futures contract on gold with a clearance by LCH. Clearnet (affiliated with the LME clearing company). «Also ShFE may make opportunities for the LME, however, not clear the degree of interest ShFE to cooperate with the London Metal Exchange," — says the analyst.