HKEx won’t be warehousing walkover

Dec 06, 2012 | 10:28 AM | Andrea Hotter

Tags  LME, HKEx, Charles Li, warehousing, Goldman Sachs, JPMorgan Chase, Andrea Hotter,

NEW YORK — Hong Kong Exchanges & Clearing Ltd. will get tough with warehousing companies that it finds to be acting against the rules of the London Metal Exchange, or even outside of the spirit of the rules, its chief executive officer said.

The "conspiracy theory" that the LME protects the vested interests of exchange-approved warehouses and their owners should gradually vanish now that HKEx has taken over, Charles Li told AMM in an exclusive interview in Hong Kong.

"Whatever the perception of the market of the LME’s existing board or management or regulatory infrastructure, those views shouldn’t be with us anymore, as HKEx has no reason to favor anybody—we only care about the market," he said. "When we come to a view on warehousing, I think the conspiracy theory will hopefully disappear, because no single group will be able to exert a greater level of influence over us than another."....

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