Thursday October 22 2015
News Source: Global Exchanges
Focus: Other
Type: General
Country: Hong Kong
Link: https://www.hkex.com.hk/eng/newsconsul/hkexnews/2015/151021news.htm
On 21st October 2015, Hong Kong Futures Exchange Limited (HKFE), HKFE Clearing Corporation Limited (HKCC), the London Metal Exchange (LME) and LME Clear Limited (LME Clear), subsidiaries of Hong Kong Exchanges and Clearing Limited (HKEx) and members of the HKEx Group, signed a non-binding memorandum of understanding (MOU) for the proposed development of a trading link between HKFE and the LME and a clearing link between HKCC and LME Clear, to be named “London-Hong Kong Connect”.
If implemented, the link will enable HKFE’s eligible Exchange Participants to trade LME products, and HKCC’s eligible Clearing Participants to clear those trades. Development of the model is at a preliminary stage and further work needs to be done to determine the appropriate trading and clearing arrangements.
Implementation of the trading and clearing links is subject to regulatory approval in Hong Kong, the United Kingdom and the European Union. No formal agreement has been entered into and HKFE, HKCC, LME and LME Clear will discuss the types of products to be involved, the operational model, the system requirements and other related issues with the relevant regulators, and will update market participants in due course.
Click on the link above for further details.