The commodity exchange opened for trading with its
initial product suite of a US dollar-denominated gold futures
HKMEx said it also intends to expand to other
commodity products, including a newly announced
renminbi-denominated gold contract.
Trading in HKMEx’s 32-troy ounce gold
contract totalled 3,929 contracts in the first day.
"We’re very pleased with our trading
volumes so far. It shows strong support from out members, as
well as the greater financial community at large," Cheung said.
"It shows there is indeed demand for a gold futures contract
providing physical delivery, and designed with Asian needs in
HKMEx went live with 18 trading members.
The launch of the exchange marks the completion of
several years work, having been announced back in 2008 and
scheduled to go live at the end of 2009.
The new exchange is attempting to position itself
as a gateway between China and the rest of the world, profiting
from restrictions which govern Chinese derivatives trading.
Chinese nationals are forbidden to trade markets outside of
China and Hong Kong.
China’s thirst for commodities is
perhaps unrivalled. The country’s domestic
exchanges boast some of the largest trading volumes anywhere in
the world, despite the restrictions on who can trade as well as
tight controls preventing speculative trading.
Hoping to lure even more Chinese demand, HKMEx
yesterday said it is planning on listing a renminbi-denominated
gold futures contract.
The exchange said it hopes to roll-out the contract
by Q4 2011, supplementing an expanded product suite.
FOi understands this will also include the
introduction of a silver future.
Enjoyed the article from our premium news
and data site Futures and Options Intelligence?
more daily news access to a database of over 25,000 contracts
on 80+ exchanges.