NEW YORK The London Metal Exchange and the Hong Kong Exchange (HKEx) will wait for the results of a consultation on proposals to tackle queues at LME-listed warehouses before deciding if further action is necessary to resolve the highly charged issue, the chief executive officers of both exchanges said.
Both bourses are "all ears" in the consultation over proposed changes to force warehouses to load out more metal than they draw in at locations where long queues have developed, HKEx chief executive officer Charles Li told journalists on a joint conference call with Garry Jones, the newly named chief executive of the LME (amm.com, Aug. 27).
"As a guy just through the door, it would be inappropriate to say that Im going to do this, that or the other," Jones said, deferring questions on the warehousing issue to Li.
Jones nevertheless identified resolving the warehousing issue as a top priority, alongside developing clearing functionality, engaging with regulators, expanding in Asia and exploring possibilities for new products.
"Were all ears listening to everybody and hopefully that consultation process will generate enough of a market consensus for us to decide to do something or not do anything," Li said.
The LMEs proposed new load-out rules are not expected to take effect until April 2014 if they are passed (amm.com, July 1).
The issue has attracted wider attention in recent months after a number of lawsuits were filed against Goldman Sachs Group Inc., which owns one of the warehousing companies that stores LME-registered metal, and the exchange, as well as other parties (amm.com, Aug. 19).
The HKEx said earlier this month that the LMEs clearinghouse, LME Clear, is on track to launch in the second half of 2014 (amm.com, Aug. 16).