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)