UK regulator starts enforcement investigation into LME nickel trading halt

Britain's Financial Conduct Authority (FCA) has begun an enforcement probe into the London Metal Exchange's (LME) suspension of nickel trading successful 2022, the watchdog said connected Friday.

The FCA's probe volition reappraisal the conduct, systems and controls that the LME had successful spot betwixt Jan. 1 and March 8 past year.

The LME suspended chaotic nickel trading connected March 8, 2022, aft prices doubled to a grounds supra $100,000 a tonne successful a fewer hours.

Both the FCA and the Bank of England began a reappraisal into the trading halt past April.

The Bank of England separately said connected Friday its reappraisal had pointed to respective shortcomings astatine the clearing location of LME, adding it would sanction an autarkic show to measure and study connected its remedial actions.

The LME said successful a connection that it had taken progressive steps to heighten nickel marketplace liquidity and transparency.

"The LME volition cooperate afloat with this process and volition proceed to instrumentality the due steps to guarantee the semipermanent health, ratio and resilience of its market," the LME added.