Hong Kong Exchanges & Clearing Ltd (HKEX) launched a new unit in Dubai to advance its commodities business, the exchange operator said on Monday.
Commodity Pricing and Analysis Limited (CPAL), the bourse operator’s new Dubai based subsidiary, will operate as a commodities pricing administrator, providing independent price reporting and market analysis for the global metals market, it said in the statement.
The launch of the unit is in line with the group’s plans to expand its commodities business and help drive greater connectivity between China and fast-growing markets in the Middle East.
“The Middle East is a region of growing significance for the commodities market, and our presence there will allow us to better serve international stakeholders, deliver trusted pricing and analysis, and accelerate the development of sustainable metal markets,” said HKEX Chief Executive Officer, Bonnie Y Chan.
Meanwhile, the London Metal Exchange (LME), also a unit of HKEX, unveiled on Monday its plans to launch a new mechanism to establish how much of a premium customers are willing to pay for metals produced with lower carbon and that meet other sustainability standards.
CPAL will serve as the pricing administrator for the sustainable metal premia for LME, the world’s oldest and largest market for industrial metals.
(Reporting by Sherin Sunny in Bengaluru; Editing by Ronojoy Mazumdar)