Closing summary
That’s all for today, here’s the main stories so far:
A British court has granted permission for US-based hedge fund Elliot Associates and Jane Street Global Trading to sue the London Metal Exchange (LME) for cancelling nickel trades in March, Reuters reports, citing a court document.
Elliott Associates and Jane Street are invoking the Human Rights Act and are seeking to sue the LME for a combined $472 million.
UK COURT GRANTS PERMISSION FOR ELLIOT ASSOCIATES AND JANE STREET GLOBAL TRADING TO SUE THE LONDON METAL EXCHANGE FOR CANCELLED NICKEL TRADES -COURT DOCUMENT
— RedboxGlobal (@RedboxWire) October 10, 2022
Back on 8 March, the LME cancelled all the nickel trades that took place that day as the price doubled to a record $100,000 per tonne, in frenzied trading.
The surge was due to a “short squeeze” which reportedly left a Chinese nickel tycoon facing heavy losses which could have run into billions of dollars.
Tsingshan Holding Group, controlled by Chinese tycoon Xiang Guangda, had taken a short position on nickel, and saw its losses balloon on concerns that Western sanctions against Russia would hit global supply of nickel, pushing up its price.
This prompted the LME to suspend nickel trading to protect “orderly” conditions,and to then restart with limits on the daily market moves in metals for physical delivery.
Elliott claims that the LME acted “unreasonably and irrationally”. Regulators launched an investigation back in April.
