Hedge fund manager Elliott Associates has launched a $456 million lawsuit against the London Metal Exchange (LME) following the suspension and cancellation of nickel trades on the Hong Kong Exchanges and Clearing-owned platform, according to a report by Reuters.
Hedge fund manager Elliott Associates has launched a $456 million lawsuit against the London Metal Exchange (LME) following the suspension and cancellation of nickel trades on the Hong Kong Exchanges and Clearing-owned platform, according to a report by Reuters.
LME’s parent company revealed in a filing that both LME and LME Clear Limited have been named as defendants in a judicial review claim filed in a British court in early June.
The hedge fund is seeking leave to challenge LME’s decision to cancel its trades in nickel contracts on 8 March after market volatility saw prices double to over £100,000 a tonne in just a few hours.
The filing reveals that Elliot Associates believes the cancellation was “unlawful on public law grounds” and “constituted a violation” of its rights.
