LONDON: British monetary regulators mentioned on Monday that they might evaluation the way in which the London Steel Alternate (LME) dealt with a halt in chaotic nickel buying and selling final month and mentioned the episode underlined questions in regards to the LME’s transparency.
The trade, the world’s oldest and largest marketplace for industrial metals, suspended nickel buying and selling on March 8 after costs spiked by greater than 50% in a matter of hours to hit $100,000 a tonne.
The Monetary Conduct Authority mentioned it and the Financial institution of England would decide if additional motion ought to be taken.
“Occasions across the suspension and resumption of buying and selling have underlined questions raised in a current LME Dialogue Paper on Market Construction, significantly the position of transparency within the LME and associated markets,” the regulators mentioned.
“The FCA has been in dialogue with the LME on its proposals for a while and expects the LME to fastidiously think about how current occasions ought to form its future strategy on market construction.”
The LME mentioned it welcomed the announcement from regulators and added it could fee its personal evaluation of the occasions to establish motion to reduce the danger of a disorderly market in future.
The trade launched a 15% higher and decrease every day worth restrict for all its bodily delivered metals after the chaotic buying and selling interval. – Reuters