Turmoil on trading floor as exchange boss quits
THE boss of the historic London Metal Exchange left abruptly yesterday after less than three-and-a-half years in the job – leaving a 34-year-old in charge.
Garry Jones, 57, is ‘retiring’ as chief executive of the world’s oldest and largest metals market, its Hong Kong owners said.
He will be replaced by Matthew Chamberlain, the LME’s chief operating officer, until a permanent replacement can be found.
Jones is the second senior manager to leave the 140-year-old business in two months, following the departure of former chief operating officer Stuart Sloan in December.
The shake-up at the top of the LME follows a stormy period in the company’s history after its £1.8bn takeover by Hong Kong Exchanges and Clearing (HKEX) in 2012.
When Jones was given the top job at the LME by HKEX chief executive Charles Li in September 2013, he was tasked with making it more profitable as the new owners sought to get a return on their investment.
But his decision to raise trading fees by more than 30pc in 2015 infuriated LME members, such as brokers and traders.
In a climbdown last August, the LME slashed some of its fees as it attempted to win back business which had moved to investment banks and rival exchanges. But as recently as November, hedge fund trader and LME veteran Michael Farmer described the cost of trading on the exchanges as ‘prohibitive’.
LME trading volumes fell 7.7pc last year, following a 4.3pc fall in 2015, as the downward trend was reinforced by weak demand from China, the world’s top consumer of industrial metals.
While the LME has been struggling, rivals such as Chicago-based CME Group and the Shanghai Futures Exchange in China have grown.
HKEX said Jones, who was paid £1.7m in 2015, has agreed to stay on as an adviser to the LME until the end of the year.
‘We thank Garry for the contributions he has made to the transformation of the LME over the past few years and we wish him the best in his new endeavours,’ said Li.
Industry figures welcomed Chamberlain’s promotion despite his age. ‘The decision to appoint Matt is not a surprise,’ a source at one metals brokerage told Reuters.
‘He’s young, intelligent and understands the business. Charles Li may decide to keep Matt in the chief executive’s position, if he can find a way to improve volumes.’
Andrew Dodsworth, the LME’s head of market operations, will take over as interim chief operating officer.