ASIAN FUTURES: Hong Kong Mercantile Exchange's new contract will bridge global and Chinese copper markets

Apr 26, 2012 | 05:32 AM |

The five-tonne copper contract that the Hong Kong Mercantile Exchange (HKMEx) plans to launch is generating strong interest in Hong Kong, mainland China and western commodity trading centres for a host of reasons, executives at the exchange told Metal Bulletin. The contract, which will launch over the next few months pending regulatory approval, will trade in renminbi and be margined and settled in dollars, “is a unique way of tapping into the mainland markets [of China] without needing direct access”, coo William Barkshire said.   The exchange and its executives and members believe it is well-placed to give Chinese market participants extended trading hours and provide global traders access to mainland pricing.  “The goal is to deliver Asian pricing to the market,” said HKMEx president Albert Helmig, who has a long experience in commodity markets, serving as vice-chairman of Nymex as well as on its board and executive committee from 1991-2000. In addition to the gold and silver....