LONDON The London Metal Exchange is in a period of change, which new chief executive officer Garry Jones said he is equipped to deal with because of his credentials, his willingness to consult with the entire supply chain and his crisis management skills.
The exchange, for which he took over the helm Sept. 30, is in the process of a transformation, he said Oct. 7 at the LME Metals Seminar in his first public appearance as the LMEs chief.
"Its important to remember that we began as a mutual, which moved as an intermediate step into a constrained profit model, and now were a division of a commercial business with global reach," he said.
The LME will be run from two hubs in London and Hong Kong: the former will focus on business in Europe, the Gulf, North America and South America, while Hong Kong will focus on the development of business in Asia and China.
The Hong Kong hub will be run by Rebecca Brosnan, who worked for Hong Kong Exchanges & Clearing Ltd. (HKEx) when it acquired the LME. The LME will maintain its representative office in Singapore, Jones said.
"There is no hidden agenda for HKEx in the development of this business, no 20-page document with all the things were going to change. I will come in, look and build," he said.
Building the business will require the LME to extend the access from Asia and China into the exchange, but also to open up new markets in China and Asia through the hub in Hong Kong, Jones added.
The change from a member-owned exchange will be reflected in wide consultation, he said.
"Youll see much more engagement from us across the whole value chain," which he characterized as including "producers, smelters, merchants, brokers, dealers, end-users, all the way to the famous drink companies that produce the cans" in which the smelted aluminum ends up.
A version of this article was first published in AMM sister publication Metal Bulletin.