London Metal Exchange Is Being Sued For US$456.4 Million Over… Human Rights Violations?

The London Metal Exchange and LME Clear have been named defendants in a judicial review claim filed by New York investment firm Elliott Associates. The suit, served on Thursday, is related to the nickel trading suspension on March 8.

“The claim seeks to challenge the decisions giving effect to and maintaining the cancellation of the claimants’ alleged trades in nickel contracts,” read the statement released by Hong Kong Exchanges and Clearing, LME’s parent company.

The exchange suspended the nickel market on March 8 after the price skyrocketed beyond US$100,000/tonne in just a few hours, after Chinese nickel producer Tsingshan Holdings Group covered its massive short position on the resource. It canceled US$3.9 billion worth of trades, plummeting the price back to US$50,000.

The claimants are seeking US$456,391,500 in restitution.

However, what’s interesting is that the claimants are also alleging that the nickel trading suspension “was unlawful on public law grounds and/or constituted a violation of the claimants’ human rights.”

“The LME management is of the view that the claim is without merit and the LME will contest it vigorously,” HKEX added.

Following the March 8 halt, LME imposed a 5% price limit, up or down, to regulate the trading. However, when the nickel market opened on March 16, the price went below the limit at US$45,590. Due to systems error, LMEselect still “allowed a small number of trades to be executed below this lower daily price limit.” This prompted the exchange to halt once again the nickel trade.

The claim has been filed in England’s High Court of Justice. 


Information for this briefing was found via HKEX. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

America Uses More Copper Than It Makes | Simon Quick – Canadian Copper

Gold Bulls Run Faster Than New Mines?! | Thomas Mumford – Scottie Resources

Is This the Start of a New Gold Rush | Russell Ashton – Juggernaut Exploration

Recommended

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Altamira Gold Encounters Porphyritic Intrusive Rocks In Initial Scout Drilling At Regional Targets

Related News

Canada Nickel Enters MOU With Glencore For Potential Use Of Kidd Facilities

Canada Nickel Company (TSXV: CNC) is steadily developing out its flagship Crawford Nickel-Cobalt Sulphide project...

Monday, January 11, 2021, 08:08:40 AM

Voltage Metals Commences 3,000 Metre Drill Program At Ontario Nickel-Copper Project

Drilling is set to begin for new CSE issue Voltage Metals Corp (CSE: VOLT). The...

Tuesday, April 19, 2022, 08:17:53 AM

UPDATED: Giga Metals Set For Takeoff Following Reuters-Sourced Tesla Rumour

Giga Metals Corp (TSXV: GIGA) appears to be set for takeoff this morning, despite currently...

Friday, September 11, 2020, 10:31:18 AM

London Metal Exchange Halts Nickel Trading Again, Points To “IT System Error”

The London Metal Exchange saw itself caught in a bind again after it halted nickel...

Wednesday, March 16, 2022, 09:22:00 AM

Is It Time Again To Talk About Kyle Bass’s Thing for Nickel?

It seems like Kyle Bass is extra bullish on nickel. And we’re not talking about...

Wednesday, March 9, 2022, 05:45:00 PM