London Metal Exchange dismisses lawsuit against handling of last year’s nickel price hike, which led to a trading suspension, as ‘undeserving’
The London Metal Exchange (LME) has filed a lawsuit against the handling of last year’s nickel price hike, which led to a trade suspension for being ‘unfounded’ ahead of a three-day trial that begins tomorrow.
The 146-year-old exchange is being sued by two trading firms, Elliott Associates and Jane Street Global Trading, who claim it illegally canceled nickel trading during a chaotic episode on March 8, 2022.
Frantic: The exchange is being sued by two trading firms, claiming it illegally canceled nickel trading during a chaotic episode on March 8, 2022
The LME moved in after the price of nickel more than doubled to over $100,000 a ton, prompting the exchange to suspend trading in the metal and void that day’s trades.
The exchange said it was acting to restore calm and prevent several clearing houses from defaulting, which would have caused “significant and systemic damage” to metals markets.
An LME spokesperson added that the complaint was based on “a fundamental misunderstanding” and that all decisions were “lawful and in the interest of the market”.
Elliott and Jane Street argued that the LME’s move violated its own policies, favored some merchants, and violated their right to “peaceful enjoyment” of assets.