Hedge Funds Lose Court Fight for LME Disclosure of Nickel Crisis Communications
- Court refuses to make LME hand over internal communications
- Funds alleged the LME acted to protect short-position holders
Traders, brokers and clerks on the trading floor of the London Metal Exchange Ltd.
Photographer: Chris J. Ratcliffe/BloombergThis article is for subscribers only.
A group of hedge funds lost their court fight to force the London Metal Exchange to hand over transcripts of key phone calls and communications before its controversial attempt to ward off a potential “death spiral” by canceling nickel trades worth billions of dollars.
AQR Capital Management LLC and four other firms petitioned the court in September. The firms are challenging moves by the LME, which cancelled about $3.9 billion worth of trades on March 8, when futures spiked 250% in a little over 24 hours during a massive squeeze centered around a large short position held by tycoon Xiang Guangda. The LME had also suspended the market for a week.