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HKEX to put planned LME-HK clearing link on hold due to Brexit: CEO
[HONG KONG] Hong Kong Exchanges & Clearing (HKEX) will put on hold a planned commodities clearing link with its London Metal Exchange (LME) subsidiary due to uncertainty created by Britain's vote last month to leave the European Union, the bourse's CEO said.
In his personal blog published on Wednesday, Charles Li said the project, which was designed to clear and settle LME trades in Hong Kong, would have been subject to regulatory authorities in Hong Kong, Britain and the European Union.
"With Britain withdrawing from the EU, there is some uncertainty about the policy developments in the UK. Therefore, we will wait and monitor the development of the UK and Europe's regulatory policy before making further plans to connect the commodities markets in London and Hong Kong," Mr Li wrote.
Brexit, as Britain's exit from the EU has been dubbed, was unlikely to affect any of the exchange's other projects, he said.