LME Tells Traders to Stop Placing Orders Outside Its Limits
- Glitches had allowed trades outside price bands last week
- With prices limit-up or -down, traders focused on order book
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The London Metal Exchange banned traders from placing orders outside its newly-introduced daily price limits, in an apparent effort to address a series of large but unexecutable electronic orders in the nickel market.
The LME first introduced daily limits on how far prices could move last week, after a short squeeze in nickel saw prices jump 250% in two sessions, causing mayhem and leading the exchange to suspend trading.