Hedge fund Elliott says it may take further action on LME voided nickel trades

Pratima Desai

Mon, Mar 24, 2025, 2:36 AM 2 min read

By Pratima Desai

LONDON (Reuters) -Elliott Associates is considering further enactment against the London Metal Exchange (LME) pursuing a good connected the speech by a watchdog past week for allowing nickel prices to surge retired of power 3 years ago, the U.S.-based hedge money said connected Monday.

Elliott mislaid a suit against the speech for cancelling billions of dollars of nickel trades aft the terms deed a grounds supra $100,000 a tonne successful March 2022, prompting the LME to suspend nickel trading.

Elliott said successful an emailed connection that it was vindicated aft Britain's regulator the Financial Conduct Authority past week fined the LME 9.2 cardinal pounds successful the archetypal ever enforcement enactment against a UK exchange.

"The FCA's Final Notice of 20th March 2025 has confirmed that Elliott was correct. The LME's failures caused worldly fiscal harm to galore investors, including Elliott," Elliot said.

"Elliott is cautiously reviewing the FCA's Final Notice and is considering what further action, if any, it whitethorn instrumentality successful this matter."

Elliott did not springiness details of what further enactment it was considering.

Last October, Elliott mislaid an entreaty against the dismissal of its suit against the LME for the cancelled nickel trades, which judges said were captious for the stableness of the wide market.

In January, the Supreme Court did not assistance Elliott support to entreaty further due to the fact that it did not rise a "arguable constituent of law".

The FCA said that the LME was liable for aggregate failures to woody with terrible marketplace stress, including having lone inferior unit connected work successful the aboriginal greeting of March 8, 2022, erstwhile nickel prices rocketed retired of control.

The 148-year-old LME, owned by Hong Kong Exchanges and Clearing Ltd., accepted the findings.

"Unfortunately, beyond vindicating the presumption taken by Elliott, the FCA’s Final Notice does not code the harm caused," Elliott said.

(Reporting by Pratima Desai; editing by Eric Onstad and David Evans)