The London Metal Exchange faces more embarrassment after it halted nickel trading for a second time only minutes after reopening.
Following a one-week suspension of nickel trading, the LME introduced new rules including reduced trading hours and capping price movements at 5 percent of the closing price on March 7.
But the LME halted electronic trading for nickel just minutes after reopening yesterday due to a systems error as prices fell beyond the limit of $49,590 per ton but a handful of trades were nonetheless completed, according to Refinitiv data.
The glitch «allowed a small number of trades to be executed below this lower daily price limit,» LME said in a note, adding that it would «investigate» the problem.
Reputational Damage
The botched reopening does not bode well for LME which is already facing the wrath of traders that accused the commodities bourse of favoritism after it suspended trading the first time and canceled trades due to the historic Tsingshan-linked short squeeze.
«[LME] please note, I’m accusing you of reversing trades to save your favored cronies and robbing your non-crony customers,» said Clifford Asness, founder of $140 billion hedge fund AQR, on social media over the weekend. «Everyone who trades should know what you did. You got lawyers, I’m ready. Bring it slime balls.»
LME reopened nickel trading for a second time in the afternoon yesterday.
