The hedge fund Eliott Associates of the United States has filed a $ 456 million lawsuit against the London Metal Exchange (LME) for the decision to cancel all nickel metal trades following the chaotic metal trading in March this year that caused the stock exchange to halt metal trading and cancel all trades that day.
The lawsuit adds more pressure on the stock market which is also being scrutinized by regulators and it is struggling to damage its reputation due to trading on that difficult day in March.
On March 8, the price of nickel per day jumped by 100% to $ 100,000 per ton following a short squeeze apparently. The stock exchange stopped the metal trading and even canceled all the transactions that caused the price to jump. A spokesman for the hedge fund said the stock market was operating “unreasonably and unreasonably due to taking into account irrelevant factors, including its own financial situation”.
The LME is the largest and oldest trading exchange in the world in metals. It claims that it carried out these actions for the purpose of protecting the market as a whole when trade became disorderly. A statement from the TASE stated that “an important role that the TASE performs is to ensure that the markets are conducted in a fair and orderly manner for all those who wish to participate in trading.” She noted that trading became untidy, and that she canceled the deals in an attempt to bring the markets back to the last minute when they were settled. She therefore dismisses the claim.
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