Elliott Management Sues LME Over Nickel Trade Cancellations

Elliott Management, the hedge fund founded by Paul Singer (ex DLJ attorney, JD Harvard Law School 1969) with over $51bn in assets under management, and that pursues commodities trading as one of its strategies, is suing the LME for $456m over mass cancellation of nickel trades. 

The assertion is that the cancellation was "unlawful on public law grounds". The cancellation occurred on March 8th following volatility that saw prices doubling to over $100k a tonne in a matter of hours. HKEX, the parent company of the LME, dismissed the claim as "without merit".

LME Nickel is now trading (both cash and 3m contract) under $30K a tonne. Nickel is used in alloying to give steel (stainless steel) its corrosion resistant properties. LME Physical futures on nickel trade in 6 tonne lots with the nickel presented required to be Primary Nickel.