LME faces US$456 million suit for halting nickel trading, cancelled trades
The London Metals Exchange was sued by Elliott International for its suspension of Nickel futures trading.
The London Metal Exchange (LME) has been sued in the British courts by affiliates of American hedge fund Elliott Management over its controversial decision in early March to suspend trading of nickel futures contracts and cancel trades in the metal amid a short squeeze on the century-old bourse.
Elliott International and Elliott Associates have filed a judicial review claim in England’s High Court of Justice against LME for US$456 million, claiming that the trading suspension and trades cancellation “constituted a violation of [their] human rights”. The suit was filed on June 1, and served on the metals exchange on June 2.
The suit is “without merit”, and LME will “contest the claim vigorously”, according to a statement on Monday by Hong Kong Exchanges and Clearing (HKEX), which owns LME following a takeover in June 2012.