The LME suspends nickel and cancels trades

Three-month nickel spiked above $100,000 a tonne in early trading, more than double the previous close, during a squeeze on a large short position. The LME halted trading and cancelled trades from that morning.

Why it matters. Hedging assumes the exchange will function; this episode showed it may not.

Source

FOW

In the course

Module 4: Metal markets