Russian aluminum producer United Co. Rusal is suing the London Metal Exchange regarding its new rules governing the LME's warehouses. "Rusal has alleged that the consultation conducted by LME was unfair and procedurally flawed, that the LME's changes to its warehousing policy are irrational and disproportionate, and that Rusal's human rights have thereby been breached," according to Hong Kong Exchanges and Clearing, which acquired the LME in 2012.
Robin Paine, chief technology officer at the London Metal Exchange, explains how the bourse's IT function is being incorporated into its new parent company, Hong Kong Exchanges and Clearing. "The IT function is a significant contributor to the success of the London Metal Exchange and is the largest single department within the company -- both by headcount and by cost," Paine said. "The IT function thus has a significant responsibility to deliver value to the LME market participants, the regulators and to the LME parent company, Hong Kong Exchanges and Clearing."
Hong Kong Exchanges and Clearing announced that Garry Jones, a 30-year veteran of exchanges and financial services, will become CEO of the London Metal Exchange. Jones, formerly a senior executive at the NYSE Liffe, has limited experience in metals. However, Jones has extensive experience with derivatives, highlighting HKEx's efforts to push into commodity derivatives.
The London Metal Exchange recently signed a memorandum of understanding with Hong Kong Exchanges and Clearing and China Beijing International Mining Exchange. The MOU is the beginning of a "collaboration in the exploration of new products and trade services suitable for the mainland, Hong Kong and overseas markets ... and [is] another demonstration of our commitment to expanding the LME's business in Asia," said Romnesh Lamba of HKEx.
Hong Kong Exchanges and Clearing might have an advantage over other bidders for the London Metal Exchange because HKEx would bring improved access to China, Nisha Gopalan writes. "With close ties to mainland exchanges and government officials as well as its experience in trading yuan-denominated securities, the Hong Kong exchange operator appears a worthy contender," Gopalan writes.