Hong Kong Exchanges and Clearing (HKEx), The London Metal Exchange (LME) and Bank of China (BOC) have signed a memorandum of understanding (MOU) on cooperation and the exchange of information regarding the clearing of renminbi (RMB) commodity products.
The MOU was signed by HKEx's head of global clearing Gerald Greiner, HKEx's Co-head of global markets and LME chief executive Martin Abbott (pictured) and BOC's risk managing director Shi Wei. The signing ceremony was held in Hong Kong and was witnessed by HKEx chief executive Charles Li and BOC executive vice president Chen Siqing.
HKEx acquired the LME last year.
"The MOU entered into today marks the beginning of our collaboration to examine the feasibility of LME contracts to be cleared in RMB and potential development of RMB-denominated commodity products in the HKEx Group platforms," says Li. "This collaboration also demonstrates our commitment to expanding the membership base of the LME and reaching out to users of the LME in different markets.
"BOCI Global Commodities (UK) Limited, a wholly-owned subsidiary of Bank of China Group, is a clearing member of the LME. It is not only the first Chinese clearing member since LME was founded 135 years ago, but also the first Chinese institution offering direct trading and clearing services in the Exchange," says Chen. "I believe the signing of the MOU regarding strategic cooperation among HKEx, LME and BOC marks the new milestone for the overall cooperation in the future."