HONG KONG May 20 The Hong Kong Mercantile Exchange, operator of an electronic platform for trading in gold and silver futures, has given up its licence from the local securities regulator to provide automated trading services.
The Securities and Futures Commission said in a statement the Hong Kong-based operator had decided to surrender the licence because it felt trading revenues had not been sufficient to support operating expenses.
"With immediate effect no new orders may be placed and all open positions will be financially settled at the settlement price determined by the Hong Kong Mercantile Exchange and its designated clearing house," the operator said in a statement on its website at the weekend.
The HKMEx intends to re-apply for the service with stronger and more effective market maker programs, it added.
The HKMEx launched electronic trade in gold futures in May 2011 and in silver futures that July, and had plans to launch contracts for base metals. It was once named by the media as a potential buyer of the London Metal Exchange, which the Hong Kong Exchanges and Clearing purchased last year. (Reporting by Polly Yam; Editing by Clarence Fernandez)