Mr Michael Overlander’s first job was sorting copper from brass in a scrapyard north of London. Four decades later he runs the biggest floor-trading team on the world’s largest metals bourse.

Sucden Financial Limited where Mr Overlander is chief executive officer handles about 15% of contracts traded on the London Metal Exchange, which controls more than 80% of global trade in industrial metal futures. The brokerage is expanding in Asia and moving to bigger Hong Kong offices after China’s share of global copper demand more than doubled to about 40% in the past 10 years.

The expansion is occurring at the same time as the LME’s USD 2.2 billion takeover by Hong Kong Exchanges & Clearing Limited. Mr Overlander, who sits on the LME’s board backed that deal amid rival offers from Intercontinental Exchange Inc and CME Group Inc in part because of the opportunities it may offer in China, also the biggest buyer of everything from aluminum to zinc. The LME’s network of more than 600 warehouses, ensuring physical delivery against futures, doesn’t include any in China.

Mr Overlander said that “Undoubtedly they will have the capability to unpick some of the locks to the doors that had previously been closed. The Chinese authorities are obviously close to making more brokers or naming and authorizing a number of companies to become overseas brokers.”

Source - Business Week.com

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