04.27.2022

Matthew Chamberlain to Remain as LME CEO

04.27.2022
  • Matthew Chamberlain to remain as LME CEO in permanent role
  • Adrian Farnham to retire as LME Clear CEO in July 2022; successor will be announced in due course
  • Catherine Lester, LME Group CFO, to be succeeded by current Acting LME Group CFO, Tabitha Silverwood

Hong Kong Exchanges and Clearing Limited (HKEX) announces today (Wednesday) that Matthew Chamberlain, CEO of the London Metal Exchange (LME) and Group Head of Commodities, is to remain in his post.

Mr Chamberlain, who announced his departure earlier this year, will now remain with the Group. His decision allows him to drive forward the LME’s long-term development as the world’s leading trading, hedging and pricing centre for industrial metals.

It also allows Adrian Farnham, who deferred retirement to act as interim CEO while Mr Chamberlain’s successor was identified, to return to his original plan. He will step down as CEO of LME Clear in July.

HKEX Chief Executive Officer Nicolas Aguzin said: “I’m very pleased that Matt has decided to stay. He leads from the front, exemplified by his handling of the unprecedented developments in the nickel market in the last few weeks. I know that today’s news will be warmly welcomed by colleagues, customers and the broader market and I look forward to working closely with Matt and the team in the months ahead.”

Matthew Chamberlain, LME CEO, said: “Events of recent weeks have brought into focus the importance of the LME and the metals markets. I want to continue to work with the team on supporting the long-term health and efficiency of the market and drive forward the sustainable development of our industry. We have only just begun to deliver the positive long-term enhancements to the metals market and we are committed to making LME an even more attractive and resilient market with more liquidity and more participation. I look forward to working closely in partnership with our members, our customers and all other stakeholders to make this happen.”

Gay Huey Evans, LME Chairman added: “Matt demonstrates strong leadership skills and a passion for the metals industry and he is extremely well respected by colleagues, members, regulators and LME customers all over the world.

“The global metals industry continues to evolve, and Matt’s leadership will be vital as we drive forward LME’s strategy, look to introduce reforms that will further modernise and develop the market and continue to provide vital pricing, trading and hedging services for our customers. On behalf of the Board of the LME, I am delighted that Matt has elected to remain with the LME to continue this important work.”

Adrian Farnham, CEO of LME Clear, retires after a distinguished career spanning more than 30 years in financial markets and market infrastructure and nine years with the LME. Mr Farnham joined LME Clear in 2013 as Chief Operating Officer, overseeing the building and eventually the day-to-day running of LME Clear. In January 2016, he was appointed LME Clear CEO and has since driven both the strategic development of the clearing house, while also leading the major technology refresh programme currently underway at the LME Group level.

The LME announced in January 2022 a process to find the right person to succeed Mr Farnham and an announcement on his successor will be made in due course.

Mr Aguzin said: “Adrian has been instrumental in driving the development of LME Clear since he joined the Group in 2013, first as COO and then as CEO. I would like to thank Adrian for his leadership, passion and his vital contributions.”

Marco Strimer, LME Clear Chairman, said: “Much of LME Clear’s industry leadership in providing cost-efficient clearing and settlement services is down to Adrian’s dedication and vision. We wish him the very best in his retirement.”

Finally, after more than eight years as LME Group CFO, Catherine Lester has decided to leave the LME to pursue interests outside the group. The LME would like to thank her for her commitment and contribution over this period and wishes her all the very best for the future.

Tabitha Silverwood, the LME’s current Acting CFO, will succeed Ms Lester, effective 1 May 2022. Ms Silverwood has been at the LME since 2014, first as Head of External Reporting and then as Head of Finance from January 2019. Prior to joining the LME, Ms Silverwood worked as a senior manager in the PricewaterhouseCoopers LLP Audit & Assurance practice, focusing on the asset management sector. Ms Silverwood is a chartered accountant with the Institute of Chartered Accountants of Scotland.

HKEX results

Nicolas Aguzin, Chief Executive Officer said: “Throughout Q1 2022, HKEX demonstrated its robustness and resiliency despite ongoing market volatility and geopolitical fragility. Cash Market trading volumes remained at long-term normalised levels, our IPO pipeline was incredibly strong, we welcomed a range of new products such as our first SPAC listing and a number of new thematic ETFs, and we announced some important market-enhancing initiatives such as Derivatives Holiday Trading and IR Connect. However, we were not immune to global market sentiment which resulted in some softness in the IPO market, reduced valuations in our investment portfolio and pricing volatility in our commodities market. Looking forward, I am confident that we remain extremely well-placed, with a range of significant opportunities ahead. We have a strong team, a clear strategy and we are fully focused on delivering our vision to build the Marketplace of the Future.”

Strategic Highlights

HKEX Corporate Day on 29 March outlined HKEX’s vision and strategy, setting out a roadmap to build the Marketplace of the Future

Bond Connect Northbound ADT reached a record quarterly high of RMB33.9 billion

Special Purpose Acquisition Company (SPAC) listing route went live, and the first SPAC listed on 18 March 2022

IPO pipeline remains strong with over 150 active applications, including 10 SPAC applications, as at 31 March 2022

Derivatives Holiday Trading was announced in January and will commence on 9 May 2022

Q1 product launches included the first metaverse-themed ETF, first carbon futures ETF, and first Hong Kong equity ESG ETF

HKEX Foundation committed a further $10 million donation in support of Hong Kong Covid-19 pandemic relief programmes, and invited applications for its 2022 Impact Funding Scheme Financial Highlights

Q1 2022 revenue and other income of $4,690 million was 21 per cent lower than record Q1 2021 (1 per cent lower than Q4 2021)

Core business revenue was down 16 per cent against Q1 2021, reflecting lower trading and clearing fees driven by lower Headline ADT, and lower depository fees due to lower e-IPO service fees

Net investment loss of Corporate Funds was $104 million (Q1 2021: income of $219 million), due to net fair value losses on collective investment schemes of $189 million (Q1 2021: gains of $159 million), reflecting lower global valuations in equity and fixed income markets

Operating expenses were 7 per cent higher than Q1 2021 (2 per cent lower than Q4 2021), attributable to higher staff costs and marketing expenses

EBITDA margin1 was 75 per cent, 6 per cent lower than record Q1 2021 (1 per cent higher than Q4 2021)

Profit attributable to shareholders was $2,668 million, 31 per cent lower than Q1 2021 (broadly flat against Q4 2021)

Read the full results here

Source: HKEX

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