Beautiful Virgin Islands

Monday, Oct 27, 2025

US hedge fund sues London Metal Exchange for $456m over 'irrational' nickel trading decision

US hedge fund sues London Metal Exchange for $456m over 'irrational' nickel trading decision

The lawsuit stems from one of the trading hub's most chaotic days ever, when the price of the metal exploded by 250%.

The London Metal Exchange (LME), one of the world’s most important commodity trading hubs, is being sued by a US hedge fund for $456m (£363m).

The lawsuit, filed by Elliot Management at the High Court in London last week, alleges that the LME acted “unreasonably and irrationally” when it decided to cancel trading on a chaotic day that saw the price of nickel double in mere hours to more than $100,000 per tonne.

The incident stems from an unprecedented event on 8 March, just weeks after Russia’s invasion of Ukraine.

With sanctions lined up against key Russian companies and individuals, investors were weighing the possibility that Nornickel - the world’s largest supplier of the nickel - would be prevented from exporting the metal.

As the price began to rise, traders with huge bets against the value of nickel began scrambling to buy back their contracts. This caused a spike of 250% in the price of nickel - the largest move in the history of the LME.

Nornickel is the largest producer of nickel in the world.


The frenzy caused a huge fallout for banks, producers and traders and in response the LME suspended trading for eight days.

“This decision to suspend trading was taken because the nickel market had become disorderly,” the LME’s parent company said, adding that it needed to protect smaller traders from going bust by the unexpected price increase.

But when nickel resumed trading on 16 March, the LME announced that it had cancelled all trades made on 8 March.

Elliot Management - run by billionaire Republican donor Paul Singer - is claiming in its lawsuit that the LME’s decision may have been illegal.

The trading hub “acted unlawfully in that it exceeded its powers when it cancelled those trades, or that it exercised the powers that it did have unreasonably and irrationally, in particular by taking into account irrelevant factors (including its own financial position) and failing to take into account relevant factors”, a spokesperson for Elliott said.

The hedge fund has not disclosed whether it was part of any trades on 8 March that were subsequently cancelled, and how much it would have stood to gain if so.

The LME, which said it would “vigorously” contest the legal action, is currently under investigation by the financial industry regulator and the Bank of England into the suspension and cancelled trades.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Tesla Unveils Vision for Optimus V3 as ‘Biggest Product of All Time’, Including Surgical Capabilities
Francis Ford Coppola Auctions Luxury Watches After Self-Financed Film Flop
Convicted Sex Offender Mistakenly Freed by UK Prison Service Arrested in London
United States and China Begin Constructive Trade Negotiations Ahead of Trump–Xi Summit
U.S. Treasury Sanctions Colombia’s President Gustavo Petro over Drug-Trafficking Allegations
Miss USA Crowns Nebraska’s Audrey Eckert Amid Leadership Overhaul
‘I Am Not Done’: Kamala Harris Signals Possible 2028 White House Run
NBA Faces Integrity Crisis After Mass Arrests in Gambling Scandal
Swift Heist at the Louvre Sees Eight French Crown Jewels Stolen in Under Seven Minutes
U.S. Halts Trade Talks with Canada After Ontario Ad Using Reagan Voice Triggers Diplomatic Fallout
Microsoft AI CEO: ‘We’re making an AI that you can trust your kids to use’ — but can Microsoft rebuild its own trust before fixing the industry’s?
China and Russia Deploy Seductive Espionage Networks to Infiltrate U.S. Tech Sector
Apple’s ‘iPhone Air’ Collapses After One Month — Another Major Misstep for the Tech Giant
Graham Potter Begins New Chapter as Sweden Head Coach on Short-Term Deal
Ecuadorian President Daniel Noboa Alleges Poison Plot via Chocolate and Jam
Lakestar to Halt External Fundraising as Investor in Revolut and Spotify
U.S. Innovation Ranking Under Scrutiny as China Leads Output Outputs but Ranks 10th
Three Men Arrested in London on Suspicion of Spying for Russia
Porsche Reverses EV Strategy as New CEO Bets on Petrol and Hybrids
Singapore’s Prime Minister Warns of ‘Messy’ Transition to Post-American Global Order
Andreessen Horowitz Sets Sights on Ten-Billion-Dollar Fund for Tech Surge
US Administration Under President Donald Trump Reportedly Lifts Ban on Ukraine’s Use of Storm Shadow Missiles Against Russia
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
×