{"id":41252,"date":"2022-06-08T01:20:03","date_gmt":"2022-06-08T01:20:03","guid":{"rendered":"https:\/\/harchi90.com\/us-trading-firm-jane-street-sues-lme-for-nickel-trade-chaos\/"},"modified":"2022-06-08T01:20:03","modified_gmt":"2022-06-08T01:20:03","slug":"us-trading-firm-jane-street-sues-lme-for-nickel-trade-chaos","status":"publish","type":"post","link":"https:\/\/harchi90.com\/us-trading-firm-jane-street-sues-lme-for-nickel-trade-chaos\/","title":{"rendered":"US trading firm Jane Street sues LME for nickel trade chaos"},"content":{"rendered":"<div data-attribute=\"article-content-body\">\n<p>Jane Street, a top Wall Street market maker, has followed US hedge fund Elliott Management and launched a lawsuit against the London Metal Exchange over the nickel short squeeze fiasco. <\/p>\n<p>Jane Street filed the judicial review claim against LME and its clearing house on June 6, seeking $ 15.3mn after nickel trading was suspended and trades were canceled on March 8, when prices surged as much as 250 per cent, the metal exchange&#8217;s owner Hong Kong Exchanges and Clearing said on Tuesday.<\/p>\n<p>The move follows a $ 456mn claim made by Elliott, which was announced by HKEX on Monday. <\/p>\n<p>The LME&#8217;s handling of the nickel chaos has come under increasing scrutiny, with UK regulators probing the trading suspension. <\/p>\n<p>The surge in nickel price centered on Xiang Guangda, a self-made Chinese billionaire who runs Tsingshan Holding Group, the world&#8217;s biggest producer of nickel and stainless steel. <\/p>\n<p>Xiang had bet that the price of nickel would fall, but Russia&#8217;s invasion of Ukraine wrecked his wager by sending prices of raw materials soaring, leaving him exposed to losses of potentially billions of dollars.<\/p>\n<p>The LME, which sets global reference prices for industrial metals, canceled several hours of trades for the day and suspended trading in nickel for days.<\/p>\n<p>International fund managers including the chief executive of AQR Capital Management, one of the world&#8217;s largest hedge funds, have accused the LME of cronyism over the decision to cancel the trades.<\/p>\n<p>LME has denied that parent company HKEX influenced its decision to suspend nickel trading. <\/p>\n<aside class=\"n-content-recommended--single-story\">\n<h2 class=\"n-content-recommended__title\">Recommended<\/h2>\n<div class=\"o-teaser o-teaser--article o-teaser--small o-teaser--stacked o-teaser--has-image o-teaser--opinion js-teaser\" data-id=\"2a4a693d-e2e1-4fdd-b445-c7c71ab51426\">\n<div class=\"o-teaser__image-container js-teaser-image-container\">\n<div class=\"o-teaser__image-placeholder\" style=\"padding-bottom:56.2315%\"><\/div>\n<\/div>\n<\/div>\n<\/aside>\n<p>\u201cExchanges function to create an orderly market and a level playing field for investors.  The LME&#8217;s arbitrary decision to cancel nickel trades during a period of heightened volatility severely undermines the integrity of the markets and sets a dangerous precedent that calls future contracts into question, \u201dJane Street said.<\/p>\n<p>&#8220;As a leading global market maker, Jane Street has undertaken this action to recoup its losses caused by the LME&#8217;s illegal actions and to strengthen the exchange and restore the market&#8217;s trust in it.&#8221;<\/p>\n<p>LME would contest the claim \u201cvigorously\u201d and viewed it as \u201cwithout merit\u201d, said HKEX.<\/p>\n<p>A person familiar with Jane Street&#8217;s case said the amount claimed, which is significantly smaller than that in the Elliott suit, was \u201csecondary\u201d and that the company wanted to \u201csend a message\u201d that it would take action against \u201cunreasonable\u201d market actions.<\/p>\n<p>&#8220;If your job.  .  .  is to essentially ensure an orderly smooth functioning of the global financial markets, they can&#8217;t do that if the counterparties, aka an exchange, don&#8217;t align with the contracts that they enter into, \u201dthe person said.  They added that uncertainty created by actions such as the LME&#8217;s increased the risks of providing liquidity for exchange traded fund markets, one of the group&#8217;s biggest businesses.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Jane Street, a top Wall Street market maker, has followed US hedge fund Elliott Management and launched a lawsuit against the London Metal Exchange over the nickel short squeeze fiasco. Jane Street filed the judicial review claim against LME and its clearing house on June 6, seeking $ 15.3mn after nickel trading was suspended and &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/harchi90.com\/us-trading-firm-jane-street-sues-lme-for-nickel-trade-chaos\/\"> <span class=\"screen-reader-text\">US trading firm Jane Street sues LME for nickel trade chaos<\/span> Read More &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","spay_email":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[8],"tags":[],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"fifu_image_url":"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/https:\/\/d1e00ek4ebabms.cloudfront.net\/production\/a5fbb327-c83a-4435-9a8d-cec083f8b02d.jpg?source=next-opengraph&fit=scale-down&width=900","_links":{"self":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts\/41252"}],"collection":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/comments?post=41252"}],"version-history":[{"count":0,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts\/41252\/revisions"}],"wp:attachment":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/media?parent=41252"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/categories?post=41252"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/tags?post=41252"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}