LME Allows Short Traders to Defer Metal Delivery as Nickel Soars

The London Metal Exchange said it would allow traders to defer delivery obligations on all its main contracts after a wild day of price spikes, although the move appeared to fall short of addressing a key driver behind the chaos.

The decision is an extraordinary one for the 145-year-old exchange, which has long touted itself as a “market of last resort” -- into which producers can deliver unwanted metal in times of glut, and to which consumers can turn for supplies in times of scarcity.

It will mean that from Monday, traders with a short position on the LME can ...