Hong Kong Exchanges and Clearing (0388) and the London Metal Exchange have been named as defendants in a new claim by hedge fund Elliott over the cancellation of nickel trades in 2022, Hong Kong's bourse operator said on Tuesday.
HKEX said it has not been served with the claim and that Elliott must first obtain permission from the UK Competition Appeal Tribunal to serve proceedings.
Under the new claim, Elliott alleges HKEX and the LME abused a dominant market position by failing to put in place adequate systems to prevent disorderly nickel trading and manage volatility during severe market stress.
It also says the exchanges failed to identify and manage conflicts of interest and to apply transparent, objective and proportionate trading rules. Any damages would be assessed by the tribunal if Elliott succeeds.
The LME, the world's largest and oldest metals forum, faced a lawsuit and reduced nickel trading volumes after the events of March 8, 2022, when nickel prices doubled in a matter of hours.
Elliott's judicial challenge over the LME's handling of the March 2022 nickel market crisis ended in January 2025 after the UK Supreme Court refused it permission to appeal an October 2024 Court of Appeal ruling.
In March 2025, the LME also settled an enforcement investigation by the UK Financial Conduct Authority, which said large over-the-counter positions were the main driver of the sharp price surge and that the exchange had not been able to see those positions, according to HKEX's 2025 interim report.
"HKEX is of the view that the 2026 CAT Claim is without merit and will contest it vigorously", the exchange operator, which owns LME, said.
Reuters
