The London Metal Exchange (LME) announced yesterday that its Chief Executive has stepped down.
Garry Jones, who was also the executive director of LME and LME Clear (LMEC), retired yesterday, transitioning into an advisory role for the remainder of 2017. The LME has appointed Matthew Chamberlain, lately the organization’s COO, as Interim Chief Executive. Andrew Dodsworth will be replacing Chamberlain as COO. Chamberlain, 34, is now the youngest head of any major exchange and one of the youngest chief executives in the world, second only to Facebook’s Mark Zuckerberg, 32, in a ranking of 2,000 listed companies around the world.
“We thank Garry for the contributions he has made to the transformation of the LME over the last few years and we wish him the best in his new endeavours,” said Charles Li, Hong Kong Exchanges and Clearing Limited (HKEx) Chief Executive.
Jones is the second senior manager to leave the organization in as many months. Stuart Sloan left the organization in December without explanation.
Jones joined the organization in November 2012 when the HKEx purchased LME for US$2.2 billion. During Jones’ fifty months at the LME the organization worked toward expanding into the People’s Republic of China, but with limited success. Despite the years spent attempting to break into the Chinese market, the organization settled for establishing a spot commodities platform in Shenzhen, a short distance away from Hong Kong.
His administration also saw the exchange’s fees raised significantly – fees jumped by 34% in 2015, likely contributing to a 7.7% drop in the exchange’s volume last year. The LME caved on fees last year, but not before some of its brokers considered setting up an exchange to further compete with the organization. The LME was already facing stiff competition from the CME Group in the United States and the Shanghai Futures Exchange in China, both of which have seen an uptick in trading volumes during the previous year.
The LME also worked toward eliminating long queues for withdrawing metal from warehouses. Such long lines set warehouse owners against major metal consumers like Coca-Cola and General Motors.