The Hong Kong Mercantile Exchange Ceases To Be


Maybe the occasional unscheduled four-hour break isn't the worst thing that can happen to a commodities exchange.

The Hong Kong securities regulator announced on Tuesday that it had discovered possible financial irregularities at the Hong Kong Mercantile Exchange and said it referred the matter over to the police for investigation.

The exchange ceased business over the weekend and has since wound down all open trading positions. The suspected irregularities were “serious ones,’’ Hong Kong’s Securities and Futures Commission said in a statement….

The police in Hong Kong said in a statement that they had arrested a 55-year-old man on charges of ‘‘using a false instrument’’ involving a commodities trading company. The man was not formally charged, but was detained overnight for questioning. Further details were not available.

Irregularities Suspected at Hong Kong Mercantile Exchange [DealBook]