The commodity exchange opened for trading with its initial product suite of a US dollar-denominated gold futures contract.
HKMEx said it also intends to expand to other commodity products, including a newly announced renminbi-denominated gold contract.
Trading in HKMEx’s 32-troy ounce gold contract totalled 3,929 contracts in the first day.
“We’re very pleased with our trading volumes so far. It shows strong support from out members, as well as the greater financial community at large,” Cheung said. “It shows there is indeed demand for a gold futures contract providing physical delivery, and designed with Asian needs in mind.”
HKMEx went live with 18 trading members.
The launch of the exchange marks the completion of several years work, having been announced back in 2008 and scheduled to go live at the end of 2009.
The new exchange is attempting to position itself as a gateway between China and the rest of the world, profiting from restrictions which govern Chinese derivatives trading. Chinese nationals are forbidden to trade markets outside of China and Hong Kong.
China’s thirst for commodities is perhaps unrivalled. The country’s domestic exchanges boast some of the largest trading volumes anywhere in the world, despite the restrictions on who can trade as well as tight controls preventing speculative trading.
Hoping to lure even more Chinese demand, HKMEx yesterday said it is planning on listing a renminbi-denominated gold futures contract.
The exchange said it hopes to roll-out the contract by Q4 2011, supplementing an expanded product suite.
FOi understands this will also include the introduction of a silver future.
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