London Metal Exchange Denies Chinese Interference in Nickel Market

March 25, 2022 1:07 pm ET

Traders on the floor of the London Metal Exchange, Sept. 27, 2018.


Photo:

Simon Dawson / REUTERS

The implication in your editorial “A Chinese Nickel Market Mystery” (March 23) that the London Metal Exchange’s decisions were made based on the nationality of one of the world’s largest nickel producers, or as a result of pressure from any government, is wholly unfounded .

The situation in nickel is unprecedented, and trading was suspended to preserve the integrity of the market and prevent disorder. Cancellations were made retrospectively to take the market back to the last point in time at which it was operating in an orderly manner. Had the LME not taken these decisions, the effect on the nickel market would have been intensely damaging and felt throughout the nickel value chain and investment community.

At all times the LME and LME Clear sought to act in the interests of the market as a whole. Actions were taken as part of our responsibilities as a recognized investment exchange, with no regard to the nationality of participants. There is a range of views in the market and we respect the right to express them. But to suggest that our actions were driven or unduly swayed by political motivations is simply not true.

Gay Huey Evans

Chairman, London Metal Exchange

London

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