LME will begin LMEshield service in China
LME will begin LMEshield service in China
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The London Metal Exchange (LME) has announced a pilot programme for the launch of the LMEshield commodities registration system in the People’s Republic of China. The one-year programme will be conducted in partnership with Liverpool-based Henry Bath, whose shareholders include warehouse owner CMST Development Co Ltd. and Mercuria Energy Group.
During the pilot programme, Henry Bath will issue receipts on the LMEshield warehouse registration system. Receipts will initially be issued for bonded warehouses in Shanghai, with the intention of expanding to other Chinese locations, according to the LME.
The LME says it has selected Henry Bath as its pilot partner “because, together with its shareholders CMST and Mercuria, it is in a position to have undertaken the necessary work to ensure that LMEshield can be deployed effectively in China”. Adds the exchange in a news release announcing the programme, “As the leading Chinese state-owned warehousing company, CMST, together with Mercuria, is ideally positioned to help Henry Bath to sponsor the rollout of LMEshield into the PRC.”
The deployment in China will be based on the existing LMEshield system, allowing commodities owners and banks to hold and finance Chinese commodity receipts as part of the global LMEshield portfolio, says the LME. “The LME is developing a specific set of terms and conditions to reflect the needs of the Chinese market, including provisions to ensure that LMEshield warehouses meet the highest possible standards in respect of security, insurance and inspection. As with all LMEshield jurisdictions, the LME has received a Chinese legal opinion confirming the efficacy of the LMEshield system for commodities in the PRC,” adds the exchange.
“This deal represents a key step in the development of the LMEshield platform,” says Garry Jones, CEO of the LME. “LMEshield was developed in partnership with global commodities players, who have indicated that the deployment of the system in the PRC will represent a game-changing step for the global commodities finance industry. This deal is sponsored by Henry Bath, with support from its shareholder CMST as a key state-owned warehousing operator, whose local knowledge and regulatory engagement can give confidence to the market as to the use of LMEshield in the PRC.”
Says Graham Hawkins, Group General Manager of Henry Bath, “This is a breakthrough moment. Markets have been calling for LMEshield facilities to open in mainland China. China is now established as the lead actor on the world commodities stage and the world wants to do business here. We now have Chinese DNA inside the Henry Bath business and we are proud to be using our unique position to unlock markets for the benefit of everyone.”
The London Metal Exchange, part of the Hong Kong-based HKEX Group, in 2015 hosted an exchange that traded some 170 million lots equating to about 4 billion tonnes of (predominantly nonferrous) metals and $12 trillion in notional value.
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Source: Recycling Today
LME will begin LMEshield service in China
<![CDATA[The London Metal Exchange (LME) has announced a pilot programme for the launch of the LMEshield commodities registration system in the People’s Republic of China. The one-year programme will be conducted in partnership with Liverpool-based Henry Bath, whose shareholders include warehouse owner CMST Development Co Ltd. and Mercuria Energy Group. During the pilot programme, Henry Bath will issue receipts on the LMEshield warehouse registration system. Receipts will initially be issued for bonded warehouses in Shanghai, with the intention of expanding to other Chinese locations, according to the LME. The LME says it has selected Henry Bath as its pilot partner “because, together with its shareholders CMST and Mercuria, it is in a position to have undertaken the necessary work to ensure that LMEshield can be deployed effectively in China”. Adds the exchange in a news release announcing the programme, “As the leading Chinese state-owned warehousing company, CMST, together with Mercuria, is ideally positioned to help Henry Bath to sponsor the rollout of LMEshield into the PRC.” The deployment in China will be based on the existing LMEshield system, allowing commodities owners and banks to hold and finance Chinese commodity receipts as part of the global LMEshield portfolio, says…