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Top LME Broker Marex Urges Exchange to Keep Focus on Metals Users

  • LME, regulators have announced reviews after nickel squeeze
  • Commodities broker Marex is a Ring-dealing member of the LME
The trading floor of the open outcry pit at the London Metal Exchange.

The trading floor of the open outcry pit at the London Metal Exchange.

Photographer: Chris J. Ratcliffe/Bloomberg
Updated on

As the London Metal Exchange and regulators start reviewing last month’s nickel-market chaos, one of its top brokers said any potential reforms shouldn’t come at the expense of the producers and consumers that rely on the exchange to set prices for the world’s key industrial metals.

The unprecedented short squeeze in nickel -- when prices spiked 250% in less than two days -- has renewed a longstanding tension between the interests of the exchange’s physical-industry users and their brokers on one hand, and financial participants like hedge funds and algorithmic traders on the other.