Trading

LME court win affirms the broad powers of exchanges

The court said it would not second-guess the LME’s ‘specialist decision-maker’ role

The London Metal Exchange cancelled $4bn of nickel trades on 8 March 2022, sparking a legal battle
The London Metal Exchange cancelled $4bn of nickel trades on 8 March 2022, sparking a legal battle Photo: Bloomberg via Getty Images

The London Metal Exchange’s win in its court battle with Elliott Management and Jane Street has made clear the broad power of exchanges in protecting the markets they oversee.

The High Court in its decision on 29 November said the LME didn’t act unlawfully when it cancelled trades and upheld margin requirements on 8 March 2022 after a short squeeze sent nickel prices surging to over $100,000 per ton.

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