Trading

London court throws out hedge funds’ case against London Metal Exchange over $4bn nickel debacle

AQR boss Cliff Asness: 'We knew this was an uphill battle as the LME has most of the power here... What they did here was wrong'

The LME cancelled $4bn in trades on 8 March after a short squeeze — stemming from a position held by Chinese stainless steel manufacturer Tsingshan — sent nickel prices soaring by more than 240%
The LME cancelled $4bn in trades on 8 March after a short squeeze — stemming from a position held by Chinese stainless steel manufacturer Tsingshan — sent nickel prices soaring by more than 240% Photo: SOPA Images/LightRocket via Getty Images

A London High Court has dismissed a case against the London Metal Exchange in which a group of hedge funds sought information on its 8 March decision to cancel some $4bn in nickel trades.

AQR Capital Management — as well as DRW Commodities, Flow Traders, Capstone Investment Advisors and Winton Capital Management — brought a case against the exchange, arguing that the LME had not given a proper or full explanation of its 8 March decision relating to the cancellation of nickel trades.

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