LONDON: The London Metal Exchange (LME) is being sued for US$456mil (RM2bil) over its decision to halt and undo trading in nickel after a short squeeze in March caused prices to sky rocket.
The exchange is being sued by Elliott Associates, LP and Elliott International, LP in a case filed in the English High Court on June 1, according to a statement issued by Hong Kong Exchanges & Clearing Ltd, its parent company.
“The LME management is of the view that the claim is without merit and the LME will contest it vigorously,” it said in the statement.
The exchange issued more than US$7bil (RM30.74bil) of margin calls as nickel prices spiked in March, nearly four times the previous daily record. The group cancelled billions of dollars of transactions at the highest prices.
The LME has been widely criticised for its handling of the crisis and United Kingdom regulators have announced reviews of its actions. — Bloomberg