Breaking News
Investing Pro 0
💎 Reveal Undervalued Stocks Hiding in Any Market Get Started

Factbox-Extracts from court documents in LME nickel legal case

Stock Markets Jul 14, 2022 01:31PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: Traders work on the floor of the London Metal Exchange, in London, Britain September 27, 2018. REUTERS/Simon Dawson/File Photo

LONDON (Reuters) - Hedge fund Elliott Associates and Jane Street Global Trading JSGT) are seeking to sue the London Metal Exchange (LME) for a combined $472 million after the LME cancelled nickel trades on March 8 when prices soared to top a record $100,000 a tonne.

The nickel trading debacle is the biggest crisis to hit the world's oldest metals forum in decades.

The trades were cancelled because some LME members with short positions could not pay the margins - that cover losses in the event of member defaults - required by the exchange's clearing house LME Clear.

At one point on March 8 that margin requirement would have totalled $19.7 billion, court documents submitted by the LME seen by Reuters show.

The LME has said it considers that Elliott's and Jane Street's grounds for complaint are without merit, and the LME will defend any judicial review proceedings vigorously.

Following are some extracts from the court documents filed with the London High Court by Elliott, Jane Street and the LME, which were seen by Reuters.


"The price movements on 7 March were very substantial and they required LME Clear to issue margin calls during the morning. The last increase was issued at 13:00, by which point the cumulative intra-day increase in margin requirement was approximately $7bn, being nearly three times the previous record increase set as recently as the preceding Friday, 4 March."

"Although the price movements on 7 March were substantial, the LME considered that the market remained orderly as at the close of business that day."

"LME and LME Clear executives became aware of the significant price spike around 06:00 (on March 8), after which they began to consider whether to suspend the market. During the course of a call between LME and LME Clear executives starting at about 07:30 the LME decided to suspend nickel trading on all LME trading venues."


"The Elliott Trades were for the sale of, in aggregate, 9,660 metric tonnes of Nickel deliverable on dates in June and September 2022. In total, the Claimants stood to receive gross proceeds of $728,067,420 in respect of the Elliott Trades."

"... had the Claimants sought to replicate the Elliott Trades at the earliest opportunity on 22 March 2022 and sold the same quantity of nickel, they would have received $271,675,920 gross proceeds, which is $456,391,500 less than the 8 March Proceeds. Accordingly, the Cancellation Decision caused loss to the Claimants in the amount of $456,391,500."

"In their 8 April 2022 letter, on which they still rely as setting out the relevant factual circumstances, the Defendants’ solicitors expressly stated that the decision to suspend the market and the decision to cancel trades were both taken by “the LME and LME Clear Executives.”


"As explained...(i) the total proceeds due on the trades where JSGT was the seller were USD 40,132,619.76; (ii) the total purchase cost of the trades where JSGT was the buyer was USD 7,478,340.06; and (iii) JSGT was therefore due to receive the net sum of USD 32,654,279.70."

"JSGT claims damages of USD 15,343,698.92 (plus interest thereon) in respect of its loss on the cancellation of the Jane Street Trades."

"It is inimical to the purpose of the Exchange, as a neutral trading venue, for the LME to cancel trades to protect Particular market participants at the expense of other market participants."

Factbox-Extracts from court documents in LME nickel legal case

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your profile, will be public on and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email