HKEX launches Dubai-based unit to expand in global commodities pricing

Hong Kong Exchanges and Clearing (0388) on Monday announced the launch of Commodity Pricing and Analysis Limited, a new subsidiary based in Dubai that will act as a commodities pricing administrator and provide independent price reporting and analysis for the global metals market.

CPAL will support the London Metal Exchange’s development of sustainable metal premia announced in April, HKEX said on its website.

HKEX chief executive Bonnie Chan Yi-ting said, "This initiative reflects our long-term commitment to building a world-class commodities business, led by the LME, and continuing our stakeholder engagement in this part of the world."

The LME, a wholly owned subsidiary of HKEX, has announced on Monday the next steps in its plans to develop sustainable metal premium pricing for LME-approved brands, which include the publication of a discussion paper on its proposed pricing methodology.

Dubai has in recent years positioned itself as a key global commodities trading hub. The United Arab Emirates ranked second globally, after the US, in last year’s Commodity Trade Index, which assesses the role of top commodities trading hubs in global trade.