Bank of China unit applies to London Metal Exchange

LONDON - A unit of Bank of China , one of China's big-four state-ownedbanks, has applied for membership of the London Metal Exchange,the LME said on Wednesday. 

The application by Bank of China International (BOCI) GlobalCommodities will be for a category 2 LME membership, entitlingit to trade in the electronic LMESelect and telephone markets,but not in the open outcry ring.  

It will be the first bank from China, the world's largestconsumer of industrial raw materials, to become a member of the exchange that is the world's biggest marketplace for metalsincluding copper, aluminium and nickel.  

BOCI, the investment banking subsidiary of Bank of China Ltd(BOC), had expected to get approval for membership of the LME bythe end of the first quarter at the latest, a source with directknowledge of the matter told Reuters in December.  

BOCI membership will add to the credentials of the LME,which has opened its doors to a potential takeover. Offers froma shortlist of bidders are expected in the first week of May. 

BOCI has been forging into other markets as well, and wasapproved as a clearing member of CME Group in March lastyear.

(Reuters)