New Analysis
On June 1, U.S. hedge fund Elliot Management filed a suit against LME in the English High Court for $456 million over its controversial decision to suspend nickel futures contracts and cancel trades in early March.
A few days later, on June 6, trading house Jane Street also filed its case against the exchange for $15.34 million.
Both judicial review claims have similar messages. Elliott said the London Metal Exchange (LME) should not have halted trading and erased deals after prices more than doubled to over $100,000 per metric ton in a matter of hours on March 8. It said that LME’s trading suspension and trades cancellation “constituted a violation of [its] human rights,” adding that the act was unreasonable and irrational….