HKEx to open OTC clearing house by end of year

Hong Kong (CNS) -- Hong Kong Exchanges and Clearing Ltd (HKEx), the operator of the Hong Kong stock exchange, will open a clearing house for over-the-counter (OTC) derivatives by the end of 2012, said CEO Li Xiaojia during a luncheon at the Hong Kong Securities Professionals Association on Thursday.

The OTC clearing house will open for business in early 2013 and cover fixed-income, currency-trading and interest-rate linked products, Li said, adding that preparations for base installation and legal supervision have almost been finished.

Li refused to comment on HKEx's bid for the London Metal Exchange (LME) –potentially its first overseas merger – while claiming that HKEx is posting updates on the progress of the acquisition.

The exchange announced a second round of bidding on April 30 by raising the percentage of its purchase of LME's seasoned equity offerings from five to 10 percent, which market insiders regard as a stepping stone for HKEx's march into the commodity market.

The LME said late last year that it was considering the sale of the world's premier exchange for industrial metals as one of its strategic options. The Chicago Board of Trade, NYSE Euronext and the Intercontinental Exchange Inc have also entered round two, bidding deadline of which falls on May 7.