SINGAPORE, July 29 -- The London Metal Exchange will launch copper and zinc futures trading on the Singapore Exchange in the first quarter of 2011, the two bourses said on Wednesday, to tap growing demand for metals trading in Asia.
Both exchanges are developing cash-settled mini monthly metals futures contracts to be traded and cleared through SGX, according to a joint statement from the LME and SGX.
After the launch of copper and zinc futures contracts in the first quarter, other metals contracts will follow later next year, subject to regulatory approval, the statement said.
"These contracts will create increased trading, hedging and arbitraging opportunities at a time of strong interest in metals trading in Asia," SGX Chief Executive Magnus Bocker said.
The LME is trying to attract more Asian business after trading volumes jumped 7.5 percent to more than 59 million lots in the first half of 2010.
It was also looking at launching warehousing in southern Taiwan, its fourth in Asia and the closest to mainland China, the world's top metals consumer.