Singapore Exchange to Stop Trading, Clearing LME MinisEleni Himaras, Chanyaporn Chanjaroen and Jonathan Burgos
Singapore Exchange Ltd., Southeast Asia’s biggest bourse, plans to stop trading and clearing futures on three industrial metals after the contracts attracted little interest from customers.
SGX, which started trading the copper, zinc and aluminum futures in a joint venture with London Metal Exchange in February 2011, will make the products “dormant” pending approval from the Monetary Authority of Singapore, according to an e-mailed statement from SGX in response to queries from Bloomberg News. The bourse’s shares dropped 1.1 percent to close at S$7.04 in Singapore trading today, the most on the benchmark Straits Times Index.
The LME, the world’s largest metals bourse, will pursue other options for boosting volumes in Asia, according to a separate e-mailed statement from parent company Hong Kong Exchanges & Clearing Ltd.
Hong Kong Exchanges bought the LME for $2.2 billion in 2012 to expand in commodities and pledged to help the bourse increase its presence in China. No LME-SGX metals futures have been traded since four zinc contracts in June, according to monthly market statistics from the Singapore bourse. Aluminum futures last traded in January 2013 and copper futures have had zero volume since December 2012.
The LME-SGX contracts, known as “mini,” represent five metric tons of metal, compared with the benchmark 25-ton contracts traded in London.