HONG KONG, 18 May, 2011, 11:45pm HKT– The Hong Kong Mercantile Exchange (“HKMEx”) officially began trading today and has completed its first trading day. The milestone marks a significant step in the rise of Asia in helping set global commodity prices.
Trading today on HKMEx’s inaugural USD gold futures contract closed at 11pm HKT, after a 15-hour trading session which began at 8am, spanning major commodity markets in Japan, New York, as well as London. An opening auction ran from 7:30am to 8am HKT.
As of market close at 11pm, HKMEx gold for August delivery settled at US$1,498.5 per troy ounce. A total 3,929 contracts were traded. Total value of contracts traded since HKMEx launched at 8am was US$188.54 million.
The first contract traded on HKMEx was conducted by exchange member ICBC at 8am.
HKMEx launched today with 18 members on board. The first contract available for trade by market participants is a 32 troy ounces gold futures contract denominated in US dollars, with physical delivery in Hong Kong.
“Today’s launch is a significant milestone in the global commodity industry. It also further strengthens Hong Kong’s status as an international financial centre,” said HKMEx Chairman Barry Cheung. “We’re very pleased with our trading volumes so far. It shows strong support from our members, as well as the greater financial community at large, who together have helped make our debut today the success that it is. It clearly shows that there is indeed demand for a gold futures contract providing physical delivery, and designed with Asian needs in mind.”
Albert Helmig, President of HKMEx, said: “Our trading debut today was a textbook case in flawless execution. We are well on our way to becoming the world’s gateway for commodities trading with China. With our strategic location in Hong Kong, HKMEx is ideally positioned to facilitate trading in commodities between China and the rest of the world. Our launch today marks a new era in how the world trades in commodities with China.”
The exchange received authorisation from Hong Kong’s Securities and Futures Commission as an automated trading services (ATS) provider on April 27. HKMEx began trading with 18 members on board. They include 15 broking members: BOCI Securities Ltd, Celestial Commodities Ltd, CES Capital International Co. Ltd, Chief Commodities Ltd, GF Futures (Hong Kong) Co., Limited, ICBC International Futures Ltd, Interactive Brokers LLC, KGI Futures (Hong Kong) Ltd, MF Global Hong Kong Ltd, Morgan Stanley Hong Kong Securities Ltd, Nanhua Futures (Hong Kong) Co., Limited, OSK Futures Hong Kong Ltd, Phillip Commodities (HK) Ltd, Tanrich Futures Ltd and TG Securities Ltd. The three clearing members are: Interactive Brokers (UK) Ltd, MF Global UK Ltd, and Morgan Stanley & Co International Plc.
HKMEx is backed by global and regional shareholders including China’s ICBC and COSCO Group, as well as Russia’s En+ Group. HKMEx’s trading hours run from 8am to 11pm HKT.