LME Boss Says Banks Are Partly to Blame for Nickel Short Squeeze
- Chamberlain says banks lobbied against market transparency
- Large part of Chinese tycoon’s bet was held over-the-counter
Photographer: Anthony Kwan/Bloomberg
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The embattled boss of the London Metal Exchange says the banking industry bears some responsibility for the conditions that led to a massive short squeeze that broke the nickel market.
Banks last year lobbied against efforts to increase transparency in metals markets, LME Chief Executive Officer Matthew Chamberlain said in an interview. The proposed changes would have allowed the LME to crack down on the large short position held by Tsingshan Holding Group Co. before it caused an unprecedented 250% price spike last week, he said.