Image: Reuters Berita 24 English - After nickel trades were canceled in March, Jane Street Global Trading from the United States sued the ...
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| Image: Reuters |
Berita 24 English - After nickel trades were canceled in March, Jane Street Global Trading from the United States sued the London Metal Exchange for $15,3 million. This is the second time this week that the London Metal Exchange has been sued in this way.
The LME, which is owned by Hong Kong Exchanges and Clearing, stopped doing business and stopped trading nickel on March 8 because of price volatility that caused prices to double to more than $100,000 per tonne in just a few hours. Now, regulators are looking into what happened.
A Jane Street representative said in a statement that the decision to cancel nickel trades "during a time of high volatility severely undermines the integrity of the markets and sets a dangerous precedent that makes future contracts uncertain."
In a statement, the Hong Kong bourse said that the LME thought the claim by the U.S. quantitative fund and market maker was "without merit," and that the LME would fight hard against it.
On Monday, the LME said that hedge fund Elliott Associates was going to sue it for $456 million because it canceled nickel trades.
In response to the Elliott suit, HKEX said something similar, saying that the LME had to do something to protect the market as a whole when trading became chaotic.
