Jones, the former head of NYSE Liffe, has been named the new
chief executive officer of the London Metal Exchange, replacing
OHegarty, the LMEs deputy chief executive officer
and a candidate for the top job, has submitted his resignation,
according to the LME and owner Hong Kong Exchanges &
Clearing Ltd. (HKEx).
Jones, who left NYSE
Liffe in 2012, is expected to start in his new role Sept. 30,
HKEx and LME said.
Jones include steering the LME through changes to its
under-fire warehousing regime and ensuring the LME is better
placed to grow its Chinese business.
deliberately chosen someone totally detached from whats
happening in the market, and this (appointment) helps wipe the
slate clean with the warehousing queues and other issues," one
market analyst told AMM sister publication Metal
participants believe that the new head of the LME doesnt
need to have a base metals background to be successful.
"I think its
going to be a different exchange, so it doesnt have to be
someone with a base metals background, and the new guy should
lead the exchange to the next level," a senior broker in Asia
It is important that
the new chief executive officer not have any link to the
warehousing problems and related lawsuits against the LME, a
physical metals trader in Asia said.
"Garry has deep
experience from both NYSE Liffe and ICAP of leading complex
businesses and has been at the heart of some of the most
transformative developments in the exchange sector," HKEx chief
executive officer Charles Li said in a statement. "We started
our search process looking for a leader of the LME but I am
convinced that we have succeeded in attracting someone who will
also help to shape the direction of the entire HKEx Group."
appointment and the impending departure of OHegarty, who
joined the LME in 1998 and has been deputy chief executive
officer since 2012, complete a change of the guard at the top
of the LME.
"The real news is
OHegartys departurethis says theres
going to be a big change in the guard and a change in direction
of the LME," the market analyst said.
"Losing someone like
him with inner knowledge of the workings of LME is a big blow,"
he added, saying that the exchange was probably willing to take
that chance as they look to clear up the warehousing
step down formally in six months.
"This change in
personnel is to tackle the next phase of growth at the LME,"
the market analyst said, adding "they have Bonnie (Liu) and
they need to push for (strength in) China."
HKEx hired Liu in June
as vice president for Asia commodities to grow its business in
mainland China (
amm.com, June 11). HKEx has also reshuffled its
Asia staff between its Hong Kong and Singapore offices.
version of this article was first published in AMM sister
publication Metal Bulletin.