HKEx to offer renminbi clearing of metals contracts

Deal with London Metal Exchange and Bank of China.

Hong Kong Exchanges and Clearing said the move gives Chinese investors improved access to LME, the world's leading metals marketplace, by allowing them to use the renminbi when trading LME contracts.

The agreement also covers how HKEx might develop renminbi-denominated commodity products to accommodate Chinese customers, the world's top consumers and importers of base metals.

LME contracts are traditionally denominated in US dollars. HKEx has for years, however, been offering clearing in currencies such as sterling and the euro to accommodate European investors.

HKEx plans to offer in-house clearing of LME contracts through LME Clear by September 2014. LME contracts are currently cleared through LCH.Clearnet, Europe's top independent clearing house.

HKEx said its memorandum of understanding with LME and BOC marks the beginning of its collaboration to examine the feasibility of LME contracts to be cleared in renminbi and potential development of renminbi -denominated commodity products in the HKEx group platforms.