SINGAPORE The London
Metal Exchanges revenue rose 28 percent year on year in
2012 to Hong Kong $976 million ($125.8 million), boosted by a
new trading fee introduced July 2, the LMEs owner, Hong
Kong Exchanges & Clearing Ltd. (HKEx), reported Feb.
The LMEs trading volumes
last year stood at 159.7 million lots compared with 146.6
million lots in 2011.
HKEx took over the LME in
December 2012 in a $2.2-billion deal that ended 135 years of
independence for the market (
amm.com, Dec. 6).
"Building on the deep liquid
markets of the LME, we will expand the existing business by
lowering barriers for Asianand particularly Mainland
(Chinese)investors to access the LME market," HKEx said.
"Key initiatives include facilitating easier cross-border
access, developing Asian time zone trading and clearing,
offering (yuan) clearing services and extending the LMEs
warehouse network into the mainland of China."
The LME will also continue to
review the warehousing system, HKEx said.
"(The) LME will keep the
operation of the warehousing system under constant review and
will continue to tune the system when such tuning is both
necessary and effective," it added.
HKExs net income for 2012
fell 20 percent to HK$4.1 billion ($528.6 million), hurt by
higher costs, lower annual turnover and a decline in new
listings and fundraising.
A version of this article was first published by AMM sister
publication Metal Bulletin.