SGX May Renegotiate LME Metals License Agreement, President SaysJonathan Burgos and Chanyaporn Chanjaroen
Singapore Exchange Ltd., Southeast Asia’s largest bourse, may renegotiate its licensing deal to trade London Metal Exchange contracts after Hong Kong Exchanges & Clearing Ltd. bought the LME, according to the SGX president.
“It will get renegotiated,” Muthukrishnan Ramaswami said in an interview in Singapore today. “We have the right to trade it but are we going to trade without due cooperation from Hong Kong? No.”
The Singapore Exchange started trading LME-SGX copper, zinc and aluminum futures in 2011 and later added lead and steel contracts. The futures, known as “mini”, are smaller in size than those listed in London. LME-SGX zinc futures volume was two lots in February while there was none in aluminum and copper, SGX data show.
“We weren’t doing that great. It wasn’t a big business,” Ramaswami said today. Miriam Heywood, an LME spokeswoman in London, declined to comment.