The London Metal Exchange is one of Britain’s most venerable and respected independent financial marketplaces. Conducting business for well over a century, a massive takeover of the LME by Hong Kong Exchanges and Clearing will mean impressive windfalls for their biggest shareholders. Among the windfall recipients will be Metdist, owned by the former chairman of the LME, Raj Bagri and family. Goldman Sachs and JP Morgan will also reap massive benefits.
Eighty percent of Chinese base metals paper is already held by the LME, accounting for forty-two percent of global metal consumption. The brand name will not change, nor will the operations and regulatory structure, currently run from London. Preservation of the Exchange’s unique system of verbal outcry, called “The Ring” is considered a necessity.
1.4 billion in British currency is the agreed upon price for the LME, after a nine-month long auction received bids from the New York Stock Exchange, CME Group and the Intercontinental Exchange.
http://www.silverseek.com/article/chinese-buy-london-metal-exchange-%C2%A314bn-takeover
