An agreement was signed on Monday to enable yuan clearings in Hong Kong of contracts traded on the London Metal Exchange.

LME - the world's biggest marketplace for metal derivatives trading - signed the memorandum of understanding with Hong Kong Exchanges and Clearing Ltd and Bank of China Ltd. The MOU is set to open the gate for the trading of yuan-denominated commodity derivatives in the world's biggest offshore yuan center.

The move also marks a major step in the integration of the Hong Kong exchange and the London-based trading platform, after HKEx acquired the LME for $2.2 billion in December 2012.