Banks must learn lessons from the nickel crisis to avoid similar risks arising in future, according to a top UK regulator.

Prudential Regulation Authority executive director for authorisations, regulatory technology and international supervision, Nathanaël Benjamin, said that while the surge in prices on the London Metal Exchange and subsequent short squeeze that led to the suspension of trading in March had "left a few banks with bruises", those who don't manage counterparty risk properly could be in for a far worse fate in the future when markets are rockier.