Elliott funds sue LME over nickel market squeeze
By Josh White
Date: Monday 06 Jun 2022
(Sharecast News) - Activist fund Elliott Investment Management has filed suit against the London Metal Exchange, it emerged on Monday, after a huge short squeeze in March saw the exchange cancelling nickel trades.
According to Bloomberg, two Elliott vehicles are suing the LME and its clearing house in the High Court, seeking $456m (£363.43m) in damages.
The LME has faced serious criticism after it halted trading and cancelled short bets two months ago, unwinding billions of dollars worth of transactions and keeping trading stopped for more than a week.
Bloomberg said the nickel market in general was "stuck in an extended limbo", suffering from heightened volatility and low liquidity since the move.
"The LME management is of the view that the claim is without merit and the LME will contest it vigorously," the exchange said in a statement issued by its parent company, Hong Kong Exchanges & Clearing.
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