November 30, 2022: The London Metal Exchange (LME), which fights a combined $472 million lawsuit from the U.S. hedge funding Elliott Associates and Jane Street Global Trading, had an obligation to cancel nickel trades, it said in court reports.

Nickel prices on the oldest and largest exchange in the world more than doubled in hours to top a document of $100,000 on March 8, when the transfer broke the market and annulled billions of dollars of nickel trades.

The LME added that decision was taken in unprecedented market conditions, that it had its only reasonable option – and that subsequent analysis had made that rationale, court documents reported on Monday.

“The LME maintains that Elliott’s grounds for complaint have zero merits and are based on fundamental problems of the area on March 8 and the fact taken by the Metal Exchange,” an LME spokesperson added.

“All the actions taken on March 8 were lawful and made in the market’s interest. The LME will continue to defend these proceedings

 vigorously.”

The two groups of people have alleged the LME acted, which breached its published policies, favoured a few market participants from others and violated their rights below the European convents of Human rights to the “peaceful fun” of possessions.

But the exchange counters that its rulebook is giving it clear and specific power that suspends the market and cancels existing trades.