Company Information

Mission Statement

Building Asia's Exchange.

Background

The Hong Kong Mercantile Exchange (“HKMEx” or “the Exchange”) will provide standardised exchange-traded products on a transparent pricing platform to traders, investment professionals and commercial end-users in the Asian time zone. All transactions will be made on a transparent USD-based pricing platform, ensuring the full advantages of dollar financing and dollar clearing, and allowing currency hedging flexibility to market participants. In terms of regulatory compliance and oversight, HKMEx is appyling for a licence from the Securities and Futures Commission (“SFC”) of Hong Kong.

Operating under the “One Country, Two Systems” jurisdiction of the Hong Kong Special Administrative Region, HKMEx will leverage Hong Kong’s status as a world-class financial center to bring commodities trading to East Asia, meeting its need for transparent, liquid trading of staple commodities, including global commodity benchmarks such as precious metals, industrial metals, energy, natural resources, agricultural and environmental products as well as commodity indices.

As a bridge between China and international commodities markets, HKMEx’s goal is to continue Hong Kong’s success in becoming the Mainland’s offshore financial centre. The Exchange will complement Mainland commodities exchanges by enabling transparent price discovery of China-bound commodities, increasing the liquidity in trading of these commodities and ultimately providing a means of benchmarking China’s overseas investments.

Location

As HKMEx’s headquarters, Hong Kong is uniquely positioned to serve Asia’s commodities and trading community. Its competitive advantages include:

• Robust financial infrastructure featuring advanced credit facilities, real-time USD settlement and a robust monetary policy;
• Deep and diverse pools of liquidity with the broadest range of market participants in Asia and a base of highly trained and experienced human capital;
• Strategic geographic location offering superb infrastructure connections to China and the region;
• Pro-Business Environment which consists of strong legal and regulatory systems, a stable political environment and corporate tax rates among the lowest in the world.

Business Activities

HKMEx plans to offer futures, OTC futures and options on underlying on-exchange products. The Exchange has developed a disciplined and innovative product platform to meet the demands of our key customers. Products to be launched for trading and clearing will primarily be in the metals, energy, agricultural, commercial and other commodities-related markets. In designing these products, HKMEx seeks to become a strong industry partner with international and Asian trading communities, ensuring that product specifications are synchronized with their financial operations while at the same time providing market liquidity and meeting clearing requirements. For contract details, please refer to our Products & Services.

If you would like to know about our membership offerings, please refer to Membership.