Hong Kong Mercantile Exchange
 |
|---|
| Hong Kong Mercantile Exchange | |
| |
| Founded | 2008 |
|---|---|
| Headquarters | Hong Kong |
| Key People | Barry Cheung, Chairman; Albert Helmig, President |
| Products | U.S. dollar-denominated fuel-oil contracts |
| Corporate Website | www.hkmerc.com |
The Hong Kong Mercantile Exchange (HKMEx) is a commodities exchange, launched on May 18, 2011, with a goal to bridge the international commodities markets with China.[1][2] The exchange offers gold and silver futures contracts, and plans to launch additional contracts in base metals, as well as energy and agricultural products and commodity indicies.[3]
HKMEx trades are executed on its Pearl platform, which runs on the TRADExpress platform from technology firm Cinnober.[4] The solution works in conjunction with the Scila Surveillance system, produced by technology company Scila AB and marketed by Cinnober.[5] All trades are cleared through LCH.Clearnet.
Contents |
Background
HKMEx debuted May 18, 2011, using technology firm Cinnober for trading, post-trade and surveillance functions.[6] The first product traded was a 32-troy-ounce gold futures contract in U.S. dollars with physical delivery in Hong Kong, according the the release. HKMEx trading hours are between 8 a.m. and 11 p.m., Hong Kong Time, allowing for trading with Europe and the U.S. products span precious metals and base metals, energy and agriculture products, and commodity indices.
HKMEx has been building up its ownership base gradually. In June 2010, En+ Group became a founding shareholder in the exchange, taking a 10 percent stake. En+ is a Russian-based development fund which invests in mining, metals and energy projects and holds a 47 percent stake in UC RUSAL, the world's largest aluminum and alumina producer listed on the Hong Kong Stock Exchange, as well as ownership of Russia power and ferromolybdenum, coal, uranium and nuclear companies.
In December 2009, Industrial and Commercial Bank of China (Asia) Limited (ICBC (Asia)) became a founding shareholder in HKMEx. ICBC (Asia) acquired a 10 percent equity interest in HKMEx and agreed to participate extensively in the exchange’s operations as a trading member, clearing member and settlement bank.
ICBC (Asia) joined China Ocean Shipping (Group) Company, operator of China’s largest shipping container line, as a keystone investor.[7]
Reliance Money, a unit of India's Reliance Capital, announced in 2008 that it had bought a 15 percent stake in HKMEx.
The Hong Kong Exchanges and Clearing (HKEx) was not involved in the establishment of the HKMEx.[8]
As of 5pm on February 13, trading on HKMEx’s gold and silver futures reached 1,003,210 contracts, representing total turnover of over US$50 billion (around HK$390 billion). [9] Trading on the exchange's US-dollar gold futures for the first time surpassed the 10,000 daily volume mark on June 4, 2012. [10]
Products and Services
HKMEx had planned an initial listing of U.S. dollar-denominated fuel-oil contracts, followed by other commodity contracts, including both agricultural and industrial, but later announced it would begin with gold futures instead. The fuel oil launch was delayed because of complications related to physical delivery in China, according to HKMEx's president.[11]
The potential energy contracts to be launched would include the crack spreads, or oil products' relative value to benchmark crude oil, which can be used as a hedging tool for margins, or profit levels of oil refiners.
HKMEx currently trades:
HKMEx began trading gold, its first product, on May 18, 2011. This was followed by the launch of a 1,000 troy ounces silver futures contract on July 22, 2011. [12] The exchange said it also plans to launch gold and copper futures contracts denominated in renminbi. This will be followed by contracts in other precious and base metals, energy, agriculture, and commodity indicies, some of which will be financially settled.[10]
Key People
- Barry Cheung - Chairman[13]
- Albert Helmig, President
- William Barkshire, Chief Operating Officer
- Spencer Campbell, Managing Director - Southeast Asia
- Andrew Carter, Director of Application Development
- Jacky Choi, Chief Financial Officer
- Jonathan Cowan, Managing Director - Europe
- Ann M. Cresce, General Counsel and Head of Compliance
- David J. Day, Head of Marketing
- Mark Hartley, Director of Member Access
- Aubrey Ho, Director of Corporate Communications
- Jimmy T.M. Ho, Chief Operating Officer, Markets
- Mark Ho, Chief Compliance Officer
- Mark Holder, Director of Product Development
- Stephane Lannoy, Executive Director, Operations & Technology
- Wenlong Li, Executive Director, Business Development - China
- May So, Director of Human Resources
- Lieven Van den Brande, Chief Operating Officer, Operations & Technology
- Fabian Villiger, Director of Operations
- Jane Wang, Managing Director - Greater China
- Winnie Woo, Director of Programme Office
References
- ↑ Beyond Brics. FT.
- ↑ Press Release - Hong Kong Mercantile Exchange successfully launched: The world’s fastest commodity exchange now fully operational. HKMEx.
- ↑ Press Release: Hong Kong Mercantile Exchange Receives Trading Authorisation from Securities and Futures Commission. HKMEx.
- ↑ Press Release. Cinnober.
- ↑ Press Release. Cinnober.
- ↑ Press Release - Hong Kong Mercantile Exchange successfully launched: The world’s fastest commodity exchange now fully operational. HKMEx.
- ↑ INDUSTRIAL AND COMMERCIAL BANK OF CHINA (ASIA) LIMITED INVESTS IN HONG KONG MERCANTILE EXCHANGE. HKMEx.
- ↑ Hong Kong to launch fuel-oil futures trading. MarketWatch.
- ↑ Press Release: HKMEx Surpasses One Million Contract Mark. HKMEx.
- ↑ 10.0 10.1 Press Release: HKMEx Gold Trading Surpasses 10,000 Contracts. HKMEx.
- ↑ HongKong Exchange to launch gold futures. Reuters.
- ↑ Press Release: HKMEx to Begin Trading Silver Tomorrow. HKMEx.
- ↑ Hong Kong to launch commodities exchange. Associated Press.
