Guys from Hong Kong, meet the guys from Chicago.
From China's Metal.com:
Emboldened by LME woes, CME plans rival aluminum contract
*CME says customers want a viable alternativeThis wasn't exactly hard to see coming:
* LME under fire from customers over warehousing
* For a TAKE-A-LOOK on stories from LME Week, click on [ID:nL6N0HY0N8]
By Josephine Mason and Maytaal Angel
NEW YORK/LONDON, Oct 8 (Reuters) - CME Group Inc plans to launch a physically deliverable aluminum futures contract that could compete with the London Metal Exchange's $54 billion market, the latest sign that the years-long crisis over warehousing has emboldened rivals.
Harriet Hunnable, managing director of metals at CME Group, confirmed plans to move onto LME turf at a media briefing on Tuesday.
"Customers want a viable alternative to other exchange contracts on offer today," she said, adding progress on launching the contract was "very developed" and it would start in the United States.
"They want a physically deliverable contract in warehouse, and they want transparency that only CME can offer," she added.
The exchange has been quietly canvassing producers, traders and end-users on launching a competing contract for the past year. [ID:nL2E8J82UI]
The timing may be right as its London rival is under fire from end users such as MillerCoors LLC and Coca-Cola Co who use the metal for aluminum cans and are angry at its handling of warehousing policy....MORE
It's On Biatch! CME Looks to Chile Warehouses In Copper Battle With LME
Playing the LME Copper Warehousing Game: New Loadout Rules May Have Increased Financing Deals
End Users Close to Telling LME, Warehouses: "Go To Hell"
and many more.
