The Hong Kong Stock Exchange announced in the morning of June 6 that the wholly-owned subsidiaries London Metal Exchange (LME) and LME clear Limited were named as defendants in a judicial review claim filed by Elliott associates, L.P. and Elliott international, L.P. (the plaintiff). The claim was submitted to the British High Court on June 1 and served on LME and LME clear on June 2.
The claim is intended to challenge the decision to implement and maintain the cancellation of the nickel contract transaction that the plaintiff claims to have executed on or after 00:00 UK time on March 8. The plaintiff claimed that the decision was illegal under public law and constituted a violation of the plaintiff's human rights. The plaintiff claimed US $456million. LME management believes that the claim has no legal basis, and LME will actively defend it.
According to the announcement, as stated in the LME notice issued on March 10, the nickel market price rose significantly on March 7 (UK time). However, LME believes that the trading as of the close of the day is orderly. Subsequently, in the early morning of March 8 (UK time), nickel prices rose sharply in a short time. After discussing with LME clear, LME decided to suspend all nickel contract transactions from 08:15 UK time on that day and cancel all transactions executed on or after 00:00 UK time on March 8. The decision to suspend trading is due to the disorder in the nickel market. LME cancels the transaction retroactively in order to return the market to the last time when LME can be sure that the market is operating orderly. It should be emphasized that LME has always acted in the overall interests of the market. LME nickel trading was subsequently resumed on March 16 at all LME trading venues.
Earlier, the London Metal Exchange announced in the evening of March 8 that it would cancel all nickel transactions executed on the OTC and LME select screen trading system at or after 0:00 a.m. local time on March 8, and would delay the delivery of all spot nickel contracts originally scheduled to be delivered on March 9, 2022.