SEATTLE (Scrap Monster): The Financial Conduct Authority (FCA) has launched an investigation on London Metal Exchange’s decision in March last year to suspend nickel trading, after prices soared to record highs. The prices had more than doubled to cross $100,000 per tonne in a matter of few hours. The LME had cancelled nickel trades, which in turn helped its members to at least pay their margins.
RELATED NEWS:
London Metal Exchange Nickel Trading Volumes Dipped in July
LME Deferred Mandatory OTC Reporting Requirement
The statement issued by the UK regulator agency noted that it has launched an enforcement investigation into the conduct and systems and controls that prevailed in the exchange in the months prior to the nickel trade debacle. However, it declined to make any further comment about the investigation.
As per sources, the FCA initiates such investigation only when it has a solid reason to believe that some sort of misconduct has taken place. Incidentally, this is the first time that FCA has launched an investigation against an exchange.
Commenting on the development, law firm Kingsley Napley termed FCA’s decision to open an investigation against the exchange as a bold one. The decision suggests that FCA considers that the exchange might have committed serious misconduct. If the investigation leads to such a finding, it would have significant cost and reputational impacts on the exchange, it said.
Copper Scrap View All | |
Alternator | 0.41 (0.01) |
#1 Copper Bare Bright | 4.06 (0.08) |
Aluminum Scrap View All | |
356 Aluminum Wheels (Clean) | 0.78 (0) |
6061 Extrusions | 0.68 (0) |
Steel Scrap View All | |
#1 Bundle | 360.00 (0) |
#1 Busheling | 380.00 (0) |
Electronics Scrap View All |