The London Metal Exchange (LME) and Borsa İstanbul A.S. are entering into two agreements under which (i) Borsa İstanbul will acquire the LME's stake in clearing house LCH.Clearnet, and (ii) Borsa İstanbul, the LME and the LME's parent company Hong Kong Exchanges and Clearing (HKEx) will partner on the dissemination of market data.
“As the world centre for industrial metals trading, the LME is committed to identifying new ways to expand internationally and to working with strategic partners to better serve our markets. We are delighted to announce this partnership with Borsa İstanbul, and the HKEx Group looks forward to working with them on future initiatives, not only in data and base metals, but also across other asset classes,” said Garry Jones, CEO of the LME and HKEx’s Co-head of Global Markets.
Under the terms of the agreements, the LME will license LME steel billet settlement data to Borsa İstanbul, and will work with the Turkish exchange to develop future products and services for the steel market. Borsa İstanbul will also have the right to disseminate real-time pricing data from the LME and HKEx.
Borsa İstanbul Acting Chief Executive Officer Hüseyin Zafer commented: “We are delighted to initiate the start of a very exciting partnership framework with HKEx Group and LME via the present accords. Over the last year, we have been working hard at both restructuring Borsa İstanbul’s operations, as well as constructing our global linkages, through agreements in America and Europe. We are now completing these linkages through the present agreement with the premier exchange of Asia, HKEx, and we aim to build a strong business together over the coming years to serve investors and issuers. Borsa İstanbul, already the financial hub in its region, is now also truly strongly connected to the major global financial centres.”
Following this transaction, the LME has disposed of its entire remaining stake in its former clearing provider, LCH.Clearnet.