Tuesday, July 19, 2011

HKMEx: Competition for the Cartel, or Merely An Extension of Manipulation?

Yesterday we reported that HKMEx silver futures will launch this Friday, 7/22.  As many readers have been inquiring as to whether this will end the silver manipulation, or whether the cartel has ties to this new Asian exchange with the intent on continuing gold and silver manipulation, we decided to republish our investigation of the HKMEx board of directors we published in May when HKMEx gold futures launched. 

As our readers are by now aware, the HKMEx will debut gold futures in US dollars in 32 ounce contracts starting May 18th.  We expect HKMEx to soon follow with silver contracts.  Ever since the announcement was made, speculation among the gold and silver community has been swirling about whether HKMEx is an Asian extension of the banking cartel responsible for suppressing gold and silver on the LBMA/ COMEX, or if in fact the HKMEx presents the ultimate competition- an honest, FREE bullion market.

Instead of speculating, The Doc decided to do a little investigation into the HKMEx board of directors.

Honestly, we found less than we had anticipated.  Amazingly, no one from JP Morgan, HSBC, or Goldman Sachs made the board.  Heck, we couldn't even find a Rothschild.  We did find two possibly noteworthy figures, and the most suspicious is in fact the HKMEx Executive Director and President. 

First, the list of the entire board.


Captain WEI Jiafu

Dr YANG Mengxin


Dr Raymond CH'IEN Kuo-fung

Professor FAN Gang

Mr Albert HELMIG

Mr Dominic HO Chiu-fai

Ms Christine LOH

Mr Alasdair G. MORRISON


Ms Lili WANG

Professor Richard WONG Yue-chim, SBS, JP, AB, AM, PhD Chicago

Of the directors we thought are possibly noteworthy, we'll begin with the Executive Director and President of the HKMex, Albert Helmig.

Per Mr. Helmig's LinkedIn Profile (facebook for business types), Mr. Helmig's past includes:

  • CEO at Grey House
  • member at National Committee US China Relations
  • Vice Chairman, Board of Directors, Executive Ctm. at New York Mercantile Exchange (NYMEX)
  • Board Memeber at International Precious Metals Institute
  • Principle at The Helmig Corp/Energex
  • International Commodity Specialist at Prudential Bache
  • Head of Trading and Risk Management- CFO. at Helmig & Co. Inc.
  • Commodity and FX Broker at Merrill Lynch
  • Philadelphia University

Mr Albert HELMIG

From HKMEx:
Mr Albert Helmig is an Executive Director and President of the Hong Kong Mercantile Exchange. He leads the day-to-day operation of the Exchange. Together with an international pool of talented professionals, he works to build China’s global marketplace in one of the region’s most prominent financial hubs, Hong Kong.
Mr Helmig is the third generation of his family to work in the commodities trading industry. He has more than 35 years of commodities experience on Wall Street and as a commodities merchant spanning both physical commodities and financial instruments on a global basis. He is a former Vice Chairman of the New York Mercantile Exchange, and he served on the Board of Directors and the Executive Committee for 10 years and was Chairman or Vice Chairman of over 20 committees.
Mr Helmig was Founder and Chief Executive of Grey House LLC, a private consulting firm on risk management, price models and industry best practices to clients such as financial institutions, producers, integrated energy companies, government agencies and ministries, think tanks and law firms. He is a frequent contributor at industry forums and to the media. He serves on the Advisory Board of Energy Intelligence Group as well as other corporate boards.
Mr Helmig holds degrees in Finance and Economics from Philadelphia University.

The second possibly noteworthy director is Alasdair Morrison
Mr. Morrison is currently a senior advisor for Citigroup, and previously was Chairman and CEO of Morgan Stanley Asia.

Mr Alasdair G. MORRISON

Mr Alastair Morrison is an Independent Non-Executive Director of the Hong Kong Mercantile Exchange. He is a British national who has lived and worked in Asia since 1971. He holds a number of non-executive directorships and participates in a number of Government and community organizations. He is currently Senior Advisor of Citigroup Asia Pacific, a leading global financial services company, an Independent Non-Executive Director at MTR Corporation Limited, and is also non-executive Chairman of Kang & Company, Limited, based in Hong Kong, a private equity firm founded in late 2007, with offices in Beijing, Hong Kong and Seoul.
Previously, Mr Morrison served as Group Managing Director of the Jardine Matheson Group and subsequently as Chairman and CEO for Morgan Stanley Asia. With his many years in Asia, including living and working in Hong Kong, Australia and the Philippines, Mr Morrison has built extensive regional contacts in the corporate and government communities. He has participated in a number of high level government-sponsored working groups and is an active member of the community in Hong Kong.
Mr Morrison was born in Scotland on September 29, 1948, and is a graduate of Eton College and Cambridge University. He attended the Program for Management Development at Harvard Business School in 1983.

The rest of the board members are Chinese (1 Indian).

Click here to read bio's of entire HKMex board of directors:

So in conclusion, Albert Helmig, the HKMEx Director and President is the one board member that appears to possibly have any significant connection to the cartel. 

Keep in mind that everything must run through the Director and President of the Board.
Perhaps this is the cartel's man to keep things under control, while not making cartel influence blatantly obvious by filling the entire board with JPM, Goldman etc. officials?

With this knowledge in hand, we welcome our reader's thoughts on the matter.
-The Doc