City Of London
LME Says It Saved Nickel Market From $20 Billion ‘Death Spiral’
- Exchange responds to lawsuits filed by Elliott and Jane Street
- Cascade of defaults would have threatened financial stability
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The London Metal Exchange has defended its controversial decision to cancel billions of dollars of nickel trades in March as necessary to avoid a $20 billion margin call that would have sent the market into a “death spiral” and threatened the exchange’s own survival.
The LME on Monday provided its most detailed account yet of the historic short squeeze this year when prices soared 250% in little over 24 hours, in a filing outlining its defense against lawsuits from Elliott Investment Management and Jane Street.