Reuters reported that the London Metal Exchange is in talks with the Singapore Exchange on cooperating in Asia.

Analysts speculated that one of the areas the two might want to join forces in was iron ore. The SGX has a successful cleared iron ore swaps business, while the LME is revamping steel contracts that have only really taken off in Europe.

Mr Martin Abbott CEO of LME said that the SGX is the most successful venue offering cleared iron ore swaps but added that “We would not get in to a marketplace unless there is some value we can add."

He told “We are not going to compete with someone offering clearing services. We are a little bit conservative in that we have tended to stick to trading in products that can be physically delivered. For us to trade into a published index would me a major move.”

He added that the exchange would want to see a very solid over-the-counter market with widespread participants based on a rock-solid index.

Mr Abbott also said the market could expect an announcement on a new warehouse location in the region before the end of the year, but declined to offer more details.

Earlier on Thursday the LME announced the official launch of its Singapore office, its first outside London and plans to cooperate with SGX.

(Sourced from Reuters)