Trading services provider RTS Realtime Systems is now offering international buy-side firms market access to the Hong Kong Mercantile Exchange (HKMEx), China’s international commodity marketplace.
Buy-side firms can use the RTS connectivity to trade, arbitrage and offset their risk with positions on HKMEx. RTS clients will have access to all instruments traded on HKMEx.
While institutional investors are not the biggest commodities players in Asia, the asset class is gaining more attention from the buy-side as trading desks become increasingly multi-asset.
“We are excited to offer access to this new destination for global commodities trading into and out of China,” said Andy Woodhouse, RTS managing director, Asia Pacific. “Our customers in Asia and across the globe want to trade this key market. By using our global portfolio of trading venues, clients can profit from arbitrage opportunities in the worldwide precious metals markets.”
Launched in May 2011, HKMEx is an alternative trading system that trades gold and silver futures contracts denominated in US dollars. The venue is also in the process of launching a renminbi-denominated gold futures contract and further renminbi-denominated contracts in copper and other metals are planned.
RTS will provide its low-latency algorithmic trading engine RTD Tango and the hybrid trading solution RTD Tango Trader. Proprietary and FIX application programming interfaces also allow trading firms to connect to the HKMEx trading engine through their own application and tools.
HKMEx's Pearl trading system is based on TRADExpress technology, developed by system provider Cinnober, which was claimed to be the fastest commodity trading platform available when it launched last year. It allows HKMEx to handle high liquidity and trading volumes, as well as supporting the rapid development of new contracts, services and types of trading. Central counterparty LCH.Clearnet acts as the clearing house for all HKMEx trades.
RTS connects to some 135 exchanges and markets globally. The company opened new data centre hubs in Singapore and Mumbai in November, designed to support low-latency trading on major exchanges across Asia Pacific. RTS also currently offers proximity hosting and co-location services to 65 venues via its global data centre network.