Exclusive: LME CEO urged nickel trading halt minutes after waking up -court document

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The head of the London Metal Exchange spent just 20 minutes on his mobile phone scrolling for news and watching nickel prices lurch higher last year before deciding the market was disorderly and later halting trading, according to a High Court document.

Jane Street's document, filed on March 3 and seen by Reuters on Friday, gives the most detailed account yet of decision-making at the 146-year-old LME one year ago.

Later, between 7:30 a.m. and 07:55 a.m. on March 8, an LME meeting was held online, which formally took the decision to suspend trading, according to the court document. The next day, however, when nickel prices skyrocketed, the committee did not meet, the document said. The LME, when Jane Street queried that, stated that the trading operations team “was not concerned with whether the market was functioning in an orderly manner”, according to the document.

No equivalent opportunity to have such discussions was given to other market participants whose economic interests would be damaged, the filing alleged.Chamberlain also received a proposal from Gavin Prentice, chair of the LME User Committee, that the LME shut the market for 24-48 hours to allow margin calls to be made and reopen with a 10% price cap, the document said.

 

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