LME to Reopen Nickel Market March 16 After Xiang Short Squeeze
- JPMorgan-led group agreed not to make further margin calls
- LME says lender support should help keep market orderly
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Nickel trading will resume on the London Metal Exchange on Wednesday, over a week after being suspended amid a historic short squeeze, after the tycoon at the center of the crisis reached a deal with his banks.
Xiang Guangda, whose large short position roiled the market last week, has secured a standstill agreement to avoid further margin calls, reducing the risk that the squeeze is repeated when the market reopens. In a notice to members on Monday evening, the LME said that bank support for Xiang’s Tsingshan Group Holding Co. “could suggest that the potential for further disorderly conditions may be mitigated.”