LME nickel trades to be reviewed by court as Elliott files new lawsuit

Elliott Investment Management has filed a new lawsuit against the London Metal Exchange (LME), accusing the exchange of breaking UK competition rules during its response to the nickel market crisis. The claim was confirmed on Monday by HKEX, the LME’s parent company. The lawsuit focuses on how the LME handled the chaotic trading in March 2022, when nickel prices doubled in a matter of hours. At the time, the LME suspended trading and later cancelled billions of dollars worth of trades. Elliott, a major US investment firm, argues that those decisions were not only unfair but also violated competition law. The LME has previously defended its actions as necessary to maintain market order. This is not the first legal challenge from Elliott over the nickel episode. The firm also sought damages in a separate case, which is still pending. A court review of the new claim could take months. For now, the LME says it will “vigorously defend” its position. The outcome may have wider implications for how exchanges handle extreme market swings in the future.