Topic
Set up in 1877 to provide a venue for trade conducted among metal merchants in London, the LME was sold in 2012 to the operator of the Hong Kong stock exchange. In 2013, it was a defendant in lawsuits accusing Goldman Sachs, JP Morgan and Glencore-Xstrata of rigging the aluminium market.
- The London Metal Exchange’s ban on newly produced Russian aluminium, copper and nickel is likely to drive Chinese imports even higher
- It also leaves the Shanghai Futures Exchange as the only major commodities bourse in the world to accept Russian shipments of the three metals
Earnings at the world’s fourth-largest iron ore miner is forecast to fall by 14 per cent over the next year, the worst pullback compared with peers BHP, Rio Tinto and Vale, according to analyst estimates.
The LME is studying Hong Kong as a location to expand its global metal warehouse network, five sources said, hopeful success in the city might open the door to mainland China, its ultimate target.
The London Metal Exchange is planning to launch new metals contracts using prices from the Shanghai Futures Exchange, three sources said, further increasing China’s influence on global metals markets.
The London Metal Exchange and its parent, Hong Kong Exchanges and Clearing (HKEX), are ready to move forward and reboot investor confidence after winning a legal battle against American financial firms over cancelled nickel trades last year.
Hopes for stronger copper consumption were raised by a pledge from China’s central bank to ensure financing support for the property sector, a major consumer of industrial metals.
London is the latest international office opened by Hong Kong Exchanges and Clearing (HKEX) as it seeks to expand its global footprint.
Judicial review of London Metal Exchange’s decision to cancel trades in March 2022 has potential to dramatically reshape how bourses respond to extraordinary market events in the future.
The London Metal Exchange was forced to step in to stabilise the nickel market in March 2022 as chaos in the market put several members at risk of default and would have depleted the bourse’s fund to close out defaulted members’ positions, the bourse’s lawyer said.
HKEX-owned bourse made ‘irrational’ decision to cancel trades amid nickel market chaos on March 8, 2022, Jane Street lawyer said.
A judicial review in London is considering claims by Elliott Associates and Jane Street Global Trading that they were disenfranchised by LME’s response to chaos in the nickel market.
The HKEX-owned bourse faces lawsuits from US hedge fund Elliott Associates and quantitative investing firm Jane Street Global Trading over its decision to suspend trading and cancel nickel trades in March 2022.
The 146-year-old metal trading bourse is doing something every day to earn investors’ trust, CEO Matthew Chamberlain says. This includes a two-year action plan to revive its markets.
The bourses, both owned by Hong Kong Exchanges and Clearing, are together studying the possibility of offering investors the chance to buy and sell contracts of lithium carbonate, nickel sulphate and cobalt, said Dong Feng, general manager of the QME.
With its new “action plan”, the Hong Kong Exchanges and Clearing-owned bourse is seeking to rebuild investor confidence a year after chaos in nickel market.
For the LME, the warehouse issue represents yet another headache as it wades through the fallout of its last nickel crisis a year ago.
The fallout from chaos in the nickel market last March has hurt volumes at the Hong Kong Exchanges and Clearing-owned London Metal Exchange and emboldened potential competitors as the bourse prepares to relaunch trading during Asian business hours.
The Financial Conduct Authority will investigate the London Metal Exchange’s conduct and controls after last year’s temporary suspension of nickel trading.
Hong Kong Exchanges and Clearing, the city’s stock-exchange operator, will open an office in London in the first half of this year to attract international listings and more overseas investors.
The 146-year-old bourse said it was ‘committed to taking all the necessary steps’ to rebuild public confidence in its metals market, and would unveil an implementation plan in response to recommendations by consultant Oliver Wyman by the end of the first quarter.
The decline comes amid ongoing concerns that China won’t recover quickly from Covid-related shutdowns and cascading US inflation threatens a recession in the world’s largest economy.
LME faces second lawsuit in the UK court from trading firm Jane Street Global, over its controversial decision to cancel nickel trades in March.
The London Metals Exchange has been sued by two affiliates of American hedge fund Elliott Management for its suspension of nickel futures trading.
New over-the-counter reporting requirement is part of LME’s expected reforms to address conditions that led to a weeklong suspension of nickel trading in March.
Some traders are questioning whether the Shanghai Futures Exchange or the CME should play a bigger role in metals market after chaotic return of nickel trading on the London Metal Exchange.
Shares of Hong Kong and Moscow-listed aluminium producer Rusal fell by as much as 9 per cent on Monday morning after Australia slapped an immediate ban on the export of key materials bauxite and alumina to Russia.
A wave of price hikes is sweeping China’s electric-vehicle market, and is expected to dent their sales in the world’s largest automobiles market. Blame it on the Ukraine war and Tsingshan’s short debacle.
A sharp surge in nickel prices, combined with billions of dollars in margin calls, prompted the London Metal Exchange to suspend nickel trading last week.
The agreement bookends an unprecedented short squeeze in the world’s nickel market, where prices soared from US$30,000 per ton to top US$100,000 over two tumultuous days in early March.
The US carmaker and its rivals could raise prices further in the coming months if the costs of commodities such as nickel and lithium continue to increase, analyst warns.
