Traders and clerks react on the floor of the London
Metal Exchange in the City of London
The Hong Kong Stock Exchange has appointed Garry Jones as the CEO of London Metal Exchange as it moves to heal the LME's reputation after the aluminium hoarding scandal.
Jones, former CEO of the NYSE Liffe and an industry veteran with over 30 years of experience in exchanges and financial services, replaces Martin Abbott, whose resignation was announced in June. Jones will also be a member of LME's board when he assumes his role on 30 September.
Following his appointment as LME CEO, Jones will also become the Hong Kong stock exchange's co-head of global markets and a member of its management committee.
Hong Kong Exchanges and Clearing Limited acquired the LME in 2012 for more than $2bn (£1.3bn, €1.5bn) to expand into metals trading.
'International Experience of Exchanges'
At the NYSE Liffe, a global exchange offering a wide range of fixed income, currency and commodities derivative products, Jones dealt with soft and agricultural commodities trading with physical delivery, as well as market participants comprised producers, trade buyers, intermediaries, brokers and the investment community.
Jones also served as Group Executive Vice President and Head of Global Derivatives for NYSE Euronext.
Previously, he had worked with Brokertec Europe and ICAP Electronic Broking as CEO after taking a number of trading and business management positions at firms including Japan's Daiwa Securities, France's Banque Paribas and Merrill Lynch of the US.
Jones has also been a member of the board of directors of the Qatar Exchange, LCH.Clearnet Group and the Federation of European Securities Exchanges.
"Garry has a wealth of international experience of exchanges, markets and trading and is very familiar with UK rules and regulations. We are confident that under Garry's leadership, the continued success of the LME is assured," Brian Bender, chairman of the LME, said in a statement.
"Garry has deep experience from both NYSE LIFFE and ICAP of leading complex businesses and has been at the heart of some of the most transformative developments in the exchange sector," said Hong Kong Stock Exchange CEO Charles Li.
LME's Deputy CEO Resigns
The stock exchange added that Diarmuid O'Hegarty, LME's Deputy CEO, has decided to resign from his role. His resignation will be effective after a six month notice period.
Having joined the LME in 1998, O'Hegarty was appointed Deputy CEO in 2012. He also served as LME's Director of Regulation and Compliance and a member of LME's Executive Committee as well as of the Hong Kong stock exchange's Management Committee.
He has been "a significant contributor to the success of LME's integration into the HKEx Group," said Li.
Jones's appointment comes as the world's oldest metals exchange is caught in a controversy over stocking metals.
Banks trading in the metal which also own the storage warehouses have been accused of deliberately taking time to deliver aluminium supplies and so pushing up its price.
Metals consumers have mounted legal action against some of the banks over the allegations of artificially inflating delivery waiting times to lift metal prices and boost rents for warehouse owners.
LME aluminium buyers are required to pay a premium on the wholesale price of the metal to secure orders. This has risen by more than 150% since 2010 as stockpiles in warehouses rocketed to a record 5.5 million tonnes.
High aluminium prices have hit a number of industries, such as the drinks business, where consumers ultimately pay more for canned drinks whenever the cost of the metal creeps up.
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