LONDON, Feb 9 — The London Metal Exchange said today it will open LME Asia, its first overseas office, in Singapore to serve members’ needs and make the most of opportunities in the region.
“LME Asia will be led by Liz Milan, the LME’s current commercial director, who will take on the role of managing director Asia,” the LME said in a statement.
Milan would not comment on her replacement, but said it will be announced in due course. She also told Reuters that the LME board had approved her appointment and that she is aiming to take up her new responsibilities in Singapore in early April.
“A majority of our members have a presence in Singapore and other locations throughout the region, it’s crucial we are there to support them,” she said.
“We have significant business which is driven through Asia. There and there is an opportunity to look at relationships with exchanges in the region, to look at potential new contracts driven by Asia.”
The metals industry has for some month’s talked about the LME expanding its reach into Asia, with some speculating that it could open another exchange in the region.
A London-based LME trader said he did not think the LME will ever be allowed to open an exchange in Asia.
“It’s for marketing purposes. It’s just for them to be able to serve people who have interests in Asia.”
The LME has 26 category 1 and 2 members with offices in Singapore and is hoping they and other market players will use its contracts in metals, steel and plastics.
“I’m looking forward to ... exploring new opportunities for the LME, whether that is new partnerships in the region (or) new contracts for the exchange,” Milan said.”
LME chief executive Martin Abbott said Singapore has strong government support for commodity industries, good regulation, and “a deep pool of talent”.
“We already work with many brokerages and warehouse companies there so it really is a natural fit.” — Reuters
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