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.
identified resolving the warehousing issue as a top priority,
alongside developing clearing functionality, engaging with
regulators, expanding in Asia and exploring possibilities for
"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.
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
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).