LONDON (Reuters) - Several Canadian banks are expected to join the London Metal Exchange (LME) once it gets the green light from regulators in Ontario, the head of the LME said.
The LME, the world’s oldest and largest market for industrial metals, is not licensed in Canada so banks from that country must establish a British entity to join.
Currently, Royal Bank of Canada, Scotiabank and Toronto Dominion Bank have done so and are category 2 LME members — able to trade on the LME’s electronic platforms and the telephone market but not in the open outcry ring.
“We have a number of applications where people want to join from other jurisdictions and we’re working closely with them and their regulators to get the licenses in those jurisdictions and to have them join as category 2 members,” said LME Chief Executive Matthew Chamberlain.
“Canada is a country where we think there would be a number of applications if we have the licenses,” he added in an interview at the Reuters Global Commodities Summit late on Wednesday.
He also said a membership application from a Chinese entity, which he declined to name, was “very well advanced”.
In September, major Chinese broker Nanhua Futures told Reuters it was planning to start trading on the LME in the first half of next year.
The LME is owned by Hong Kong Exchanges and Clearing Ltd. (0388.HK)
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(This story corrects third and sixth paragraphs to make clear Toronto Dominion Bank is an LME member)
Reporting by Eric Onstad, editing by David Evans