With no new orders placed, all open positions will be financially settled at the settlement price determined by HKMEx and its designated clearinghouse.
The move will enable the exchange to re-align its strategy with the new industry environment since its trading revenues have not been sufficient to support operating expenses and to meet the required regulatory financial conditions.
Continuing to operate with its existing staff, HKMEx will focus on developing new products including renminbi-denominated precious and base metals contracts that satisfy customer requirements.
The new products will be launched with more effective market maker programs after it reapplies for an ATS authorization at a later date.
HKMEx chairman Barry Cheung said global commodity demand continues to shift towards Asia as the region undergoes sustained growth, presenting great opportunities that will continue to be exploited.
"Our priorities now are to protect members’ interests by ensuring effective closing of open positions while strengthening our shareholding base and developing new products that play to our distinctive strengths," Cheung added.
