HKEX says new commodities contracts to be cash-settled products

HONG KONG, June 25 Mon Jun 24, 2013 9:57pm EDT

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HONG KONG, June 25 (Reuters) - Hong Kong Exchanges and Clearing (HKEx) chief executive Charles Li said on Tuesday that new commodities contracts to be introduced by the exchange would initially be cash-settled products.

"We are going to start with cash-settled products and over time... we will develop physically deliverable capabilities," Li said in a speech to a conference in Hong Kong.

"Most likely the contract we will look at in Hong Kong will be cash settled, will be monthly and will be different sizes from the current contract," he added.

Li said earlier this year that HKEX, which bought the London Metal Exchange (LME) last year, will use the LME's status to extend HKEX's commodity platform into ferrous metals, such as iron ore, coking coal and energy.

(Reporting by Melanie Burton; Editing by Richard Pullin)

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