Standard Chartered Plc (STAN), which derived more than 60 percent of 2012 revenue from the Asia-Pacific region, moved its global head of metals trading to Hong Kong from London and plans to build up its presence there.
Jeremy East, who’s traded in the U.K. capital for about three decades, moved this month, and he will expand the metals desk in Hong Kong to be half the size of the London team in two years from about a quarter at present, according to an interview. East declined to give numbers. The London-based bank may expand into gold storage in Hong Kong and its unit started physical-metals trade in Shanghai this month, he said yesterday.
Hong Kong Exchanges & Clearing Ltd. bought the London Metal Exchange for $2.2 billion in December, and plans to introduce raw-material contracts in the region as part of its growth strategy. China’s commodity-derivatives trade led the expansion of global volumes in 2012, according to data from the Paris-based World Federation of Exchanges. China is the world’s largest user of base metals and biggest gold producer.
“Last year, with the LME purchase by HKEx and the fact that volume of copper on the Shanghai Futures Exchange was sometimes larger than the LME, the structure of the market is changing,” said East, who joined Standard Chartered in 2006. “We have a big team in London but I can see the growth here.”
Standard Chartered is a clearing member at the LME, the world’s largest base-metals market place. China’s domestic commodity exchanges, including the Shanghai Futures Exchange, restrict foreign participation.
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