LME hit with another suit over the halting of nickel trading

The London Metal Exchange (LME) has been sued by another US firm just days after a hedge fund filed a $456 million suit against the platform.

On Tuesday, Jane Street Global Trading filed a suit for $15.3 million against LME, also over the debacle witnessed in nickel trading on 8 March this year.

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

According to a CNBC report, Jane Street’s judicial review claim was filed on Monday. Like that of Elliott Management, this one is also in the English High Court.

The two suits challenge LME, owned by Hong Kong Exchanges and Clearing Ltd (HKEX) over its decision to halt nickel trading after volatility sent prices ballooning to $100,000 per ton.

Jane Street wants the judicial review to agree to the view that LME’s actions were “illegal.” As well as eyeing a court decision that will help it recover its losses, the firm believes it would help restore investor confidence in the market.

Otherwise, no action would set a “dangerous precedent,” putting the integrity of future contracts at risk, the firm noted via a spokesperson.

The LME has said the two claims have no merit and that it will defend itself against any likely proceedings.