Managed Funds Association accuses LME of 'conflict of interest' during nickel turmoil

Represents $2.6trn

James Baxter-Derrington
clock • 3 min read
It made particular note of the “inadequacy of LME’s pre-trade controls”, which it argued “exacerbated the market disorder” and led to the eventual trade cancellations.
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It made particular note of the “inadequacy of LME’s pre-trade controls”, which it argued “exacerbated the market disorder” and led to the eventual trade cancellations.

The Managed Funds Association has filed a complaint with London Metals Exchange over its suspension and cancellation of nickel contracts over the course of March 2022.

MFA, which represents $2.6trn across more than 150 members from the global hedge fund and alternative asset management industry, submitted the letter of complaint today (8 June), arguing that the exchange "failed to perform its regulatory functions". It made particular note of the "inadequacy of LME's pre-trade controls", which it argued "exacerbated the market disorder" and led to the eventual trade cancellations. Regulators to review LME approach to suspension The complaint also argued that LME could have prevented the market disorder had it acted sooner, but failed to take timel...

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