• Latest
  • Trending
  • All
  • Market Updates
  • Cryptocurrency
  • Blockchain
  • Investing
  • Commodities
  • Personal Finance
  • Technology
  • Business
  • Real Estate
  • Finance
London Metal Exchange fined by UK regulator over 2022 chaos in nickel market

London Metal Exchange fined by UK regulator over 2022 chaos in nickel market

March 20, 2025
What to Know About the ICE Raid at a Hyundai Plant

What to Know About the ICE Raid at a Hyundai Plant

October 22, 2025
Team Behind Layer 1 Cadena Discontinues Support

Team Behind Layer 1 Cadena Discontinues Support

October 21, 2025
Qwen's new Deep Research update lets you turn its reports into webpages, podcasts in seconds

Qwen's new Deep Research update lets you turn its reports into webpages, podcasts in seconds

October 21, 2025
Stocks making the biggest moves after hours: NFLX, MAT, DKNG, ISRG

Stocks making the biggest moves after hours: NFLX, MAT, DKNG, ISRG

October 21, 2025
I let OpenAI’s new ChatGPT Atlas browser do my Walmart shopping for me – here’s how it went

I let OpenAI’s new ChatGPT Atlas browser do my Walmart shopping for me – here’s how it went

October 21, 2025
Soft Manager – Trading Ideas – 5 August 2025

Aletheia — End of v2, Start of v3 – Trading Systems – 21 October 2025

October 21, 2025
Netflix stock beaten up: Why shares are down 6% after earnings

Netflix stock beaten up: Why shares are down 6% after earnings

October 21, 2025
Economist Explains The Reality Behind XRP Price Reaching $100,000, It Can’t Overtake Bitcoin

Economist Explains The Reality Behind XRP Price Reaching $100,000, It Can’t Overtake Bitcoin

October 21, 2025
investingLive Americas markets news wrap: Everybody in the boat

investingLive Americas FX news wrap 21 Oct: Gold and silver tumble.

October 21, 2025
Bitcoin Whales Sell $16B BTC as Price Risks Drop to $100K

Bitcoin Whales Shift Billions Into ETFs Like BlackRock’s IBIT

October 21, 2025
I tested the best antivirus software for Windows: Here’s what I’d use to protect my PC

I tested the best antivirus software for Windows: Here’s what I’d use to protect my PC

October 21, 2025
Stocks making the biggest moves midday: WBD, BYND, GM

Stocks making the biggest moves midday: WBD, BYND, GM

October 21, 2025
Wednesday, October 22, 2025
No Result
View All Result
InvestorNewsToday.com
  • Home
  • Market
  • Business
  • Finance
  • Investing
  • Real Estate
  • Commodities
  • Crypto
  • Blockchain
  • Personal Finance
  • Tech
InvestorNewsToday.com
No Result
View All Result
Home Commodities

London Metal Exchange fined by UK regulator over 2022 chaos in nickel market

by Investor News Today
March 20, 2025
in Commodities
0
London Metal Exchange fined by UK regulator over 2022 chaos in nickel market
491
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter


Unlock the Editor’s Digest at no cost

Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly publication.

The UK monetary regulator has levied its first penalty towards an change, fining the London Metallic Trade £9.2mn for insufficient controls throughout every week of chaotic buying and selling within the nickel market in 2022.

Junior workers have been left in cost throughout six hours of Asian buying and selling as the value of the steel spiked throughout a particularly volatile market, the Monetary Conduct Authority stated on Thursday.

The 148-year-old exchange didn’t have the “programs and controls” in place to make sure orderly buying and selling and its failure to take action had “undermined the orderliness of and confidence in LME’s market”, the FCA stated because it introduced the positive.

Nickel costs jumped as a lot as 250 per cent in March 2022 within the wake of Russia’s invasion of Ukraine, squeezing Chinese language metal producer Tsingshan, one of many largest customers of the market, which had guess costs would fall.

The LME, which units international reference costs for industrial metals and is the world’s largest metals change, was compelled to cancel a day’s trades and droop the nickel marketplace for eight days to stop some prospects from going bust making an attempt to satisfy margin calls.

“London’s steel markets are of important significance to the UK and international financial system. We count on controls that match their significance,” stated Steve Sensible, FCA joint government director of enforcement and market oversight, including that the LME ought to have been “higher ready”.

The choice to unwind the trades precipitated hedge funds Elliott and Jane Road to lose earnings of about $456mn and $15mn, respectively, and led to a wave of litigation, which the LME subsequently won. In a separate transfer on Thursday, the UK Supreme Courtroom stated it had denied Elliott permission to attraction the UK court docket judgements.

The market didn’t practice workers to recognise a “disorderly” market and the “prevailing philosophy on the LME was that buying and selling and worth discovery shouldn’t be restricted even in instances of utmost volatility”, based on the regulator.

The FCA additionally discovered that the automated programs the LME used to dampen risky buying and selling have been partially suspended and “have been of no impact throughout a time of utmost market situations, and on the premise of a call made by junior workers with none oversight from senior administration”.

The day earlier than the LME suspended buying and selling on March 8, the change was compelled to halt margin calls after repeatedly asking prospects for funds to maintain their trades open.

Members had already confronted $7.4bn in margin funds, larger than the earlier document of March 4, with additional calls for to come back because the nickel worth prolonged its rise. By the shut the change’s personal stability fund was practically worn out within the chaotic buying and selling.

Nonetheless the regulator stated that in a single day on March 7, the LME senior administration didn’t temporary the Hong Kong buying and selling operations staff about their issues over the escalating worth or the stress on margin calls. Nor have been they instructed to contact senior LME managers in a single day if the value continued to rise.

Really helpful

Efi Chalikopoulou illustration of the Union Jack with the shade of two metal ingots in the middle of it

“The Hong Kong Buying and selling Operations staff could be LME’s first line of defence throughout these early morning buying and selling hours; no different LME workers could be on responsibility,” the FCA discovered.

The LME stated on Thursday that it had applied enhancements to its controls for the reason that episode.

“Since March 2022, vital work by each the LME and the FCA has materially decreased the dangers of such an occasion from occurring once more,” the change stated.



Source link

Tags: chaosExchangefinedLondonmarketmetalnickelregulator
Share196Tweet123
Previous Post

How US energy executives are navigating Trump’s America

Next Post

Crypto world needs to get better at counterparty risk

Investor News Today

Investor News Today

Next Post
Crypto world needs to get better at counterparty risk

Crypto world needs to get better at counterparty risk

  • Trending
  • Comments
  • Latest
Private equity groups prepare to offload Ensemble Health for up to $12bn

Private equity groups prepare to offload Ensemble Health for up to $12bn

May 16, 2025
The human harbor: Navigating identity and meaning in the AI age

The human harbor: Navigating identity and meaning in the AI age

July 14, 2025
Equinor scales back renewables push 7 years after ditching ‘oil’ from its name

Equinor scales back renewables push 7 years after ditching ‘oil’ from its name

February 5, 2025
Niels Troost has a staggering story to tell about how he got sanctioned

Niels Troost has a staggering story to tell about how he got sanctioned

December 14, 2024
Why America’s economy is soaring ahead of its rivals

Why America’s economy is soaring ahead of its rivals

0
Dollar climbs after Donald Trump’s Brics tariff threat and French political woes

Dollar climbs after Donald Trump’s Brics tariff threat and French political woes

0
Nato chief Mark Rutte’s warning to Trump

Nato chief Mark Rutte’s warning to Trump

0
Top Federal Reserve official warns progress on taming US inflation ‘may be stalling’

Top Federal Reserve official warns progress on taming US inflation ‘may be stalling’

0
What to Know About the ICE Raid at a Hyundai Plant

What to Know About the ICE Raid at a Hyundai Plant

October 22, 2025
Team Behind Layer 1 Cadena Discontinues Support

Team Behind Layer 1 Cadena Discontinues Support

October 21, 2025
Qwen's new Deep Research update lets you turn its reports into webpages, podcasts in seconds

Qwen's new Deep Research update lets you turn its reports into webpages, podcasts in seconds

October 21, 2025
Stocks making the biggest moves after hours: NFLX, MAT, DKNG, ISRG

Stocks making the biggest moves after hours: NFLX, MAT, DKNG, ISRG

October 21, 2025

Live Prices

© 2024 Investor News Today

No Result
View All Result
  • Home
  • Market
  • Business
  • Finance
  • Investing
  • Real Estate
  • Commodities
  • Crypto
  • Blockchain
  • Personal Finance
  • Tech

© 2024 Investor News Today