INTERVIEW – GARRY JONES: HKEx will create a central marketplace for commodities
Hong Kong Exchanges & Clearing (HKEx) is putting together a business plan and structure for a central marketplace for commodities in China that will create an Alibaba-type equivalent for the asset class, a senior exchange executive said.
Garry Jones, HKEx co-head of global markets and also the ceo of the London Metal Exchange, said the exchange has already started hiring people to work on the spot commodities platform, which will be based on the Chinese mainland.
“There are a number of commodity exchanges all over China trading various products not linked in any way, and in the same way that (e-commerce group) Alibaba came in and became a central marketplace for retail transactions, we want to be the central marketplace for commodities,” he told Metal Bulletin.
This does not mean commodities will be traded in an “Amazon.com fashion”. Jones said the idea is that participants in commodities, from producers down and including retail, could access the markets through the platform structure, with the branding and expertise of HKEx and the LME behind it. The electronic trading platform will be supported by warehousing and a financing platform.