Hong Kong Exchanges and Clearing (HKEx), the London Metal Exchange (LME) and the Bank of China yesterday signed a memorandum of understanding agreeing to co-operate and share information about the clearing of renminbi commodity products.
HKEx chief executive Charles Li said that their intention of the three signatories would be to examine the feasibility of clearing LME contracts in renminbi. The will also look into develop renminbi-denominated commodity products on the HKEx platform.
The Bank of China has a subsidiary, BOCI Global Commodities (UK) Limited, which is a clearing member of the LME. It was the first ever LME clearing member to come from China.
HKEx bought the London Metal Exchange in a cash deal in mid-2012. Martin Abbot, the LME’s chief executive who also has the title of co-head of global markets at HKEx, announced earlier this month that he plans to leave HKEx at the end of this year.