LME Fined £9.2 Million for Failings During Nickel Crisis (2)

The London Metal Exchange was fined £9.2 million ($11.9 million) for having inadequate systems and controls to deal with a massive short squeeze in the nickel market in 2022.

The fine, the first enforcement action the Financial Conduct Authority has ever taken against a UK exchange, comes after the LME sparked widespread fury by retroactively canceling $12 billion of nickel trades booked as prices spiked.

“The LME’s systems and controls were not adequate to ensure orderly trading under conditions of severe market stress,” the FCA said in a statement on Thursday. “Decisions about market orderliness could only be taken by ...