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Gold/Mining/Energy : Sudbury Saturday Night -- Nickel Mining & Nickel Prices -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (9061)	3/24/2025 11:30:50 AM
From: LoneClone	Read Replies (1) \| Respond to of 9217

LME Fined £9.2 Million for Failings During Nickel Crisis finance.yahoo.com Jack Farchy and Mark Burton Thu, March 20, 2025 at 5:58 AM PDT 2 min read (Bloomberg) -- The London Metal Exchange was fined £9.2 million ($11.9 million) for having inadequate systems and controls to deal with a massive short squeeze in the nickel market in 2022. The fine, the first enforcement action the Financial Conduct Authority has ever taken against a UK exchange, comes after the LME sparked widespread fury by retroactively canceling $12 billion of nickel trades booked as prices spiked. “The LME’s systems and controls were not adequate to ensure orderly trading under conditions of severe market stress,” the FCA said in a statement on Thursday. “Decisions about market orderliness could only be taken by designated senior managers, but LME’s processes for escalating unusual or hazardous market conditions to those managers were inadequate.” The LME has argued that allowing the trades to stand would have led to the bankruptcy of numerous clearing members and trigger a “death spiral” through the market. UK courts have ruled that the exchange acted lawfully, and Elliott Investment Management’s attempt to appeal its case against the LME at the Supreme Court was recently rejected. The UK regulator’s censure focused on shortcomings in the LME’s automated volatility controls, known as price bands. The circuit-breakers are designed to stop prices from rising or falling too quickly, but the LME’s trading operations team disabled the systems to accommodate the spike in prices that took place in early trading on March 8, the FCA noted. “The LME’s breaches allowed the price of its 3-month nickel futures contract to increase much more quickly than would otherwise have been possible,” the FCA said. “This increased the potential exposure of investors and market users to risks the price bands were designed to mitigate.” The LME accepted the findings and so qualified for a 30% reduction in its financial penalty. The exchange and the regulator have done “significant work” since the crisis that has “materially reduced the risks of such an event from occurring again,” the LME said in a statement.