The troubled London Metal Exchange has appointed a consultant to conduct an independent review of the issues that caused the landmark nickel fiasco earlier this year.
Oliver Wyman has been selected by LME as the consultant for the independent review, according to a statement, which is expected to last till December and will include «extensive market engagement and data collection».
«We look forward to considering recommendations put forward as part of the review findings, and to taking further steps to support the long-term health, efficiency and resilience of the market and its constituents,» the HKEX-owned bourse said.
Under Fire
Since the historic nickel short squeeze in March – which was believed to be significantly driven by short positions held by Chinese industrial entrepreneur Xiang Guangda’s Tsingshan – LME has come under fire, facing pressure from various parties including investors and regulators.
In the UK, it is facing a review by financial regulators over its handling of the situation including the decision to suspend the market and cancel trades. And in the US, investment firms Elliot Management and Jane Street Global Trading have sued the exchange for damages totaling more than $470 million. Separately, hedge fund industry body Managed Funds Association filed a formal complaint with the LME over the incident.
