HKEX subsidiaries sued over cancelled nickel trades
Two subsidiaries of Hong Kong Exchanges and Clearing (HKEX) are facing legal action in the UK over cancelled nickel trades, with commodity traders and asset managers seeking damages of more than HK$90 million. According to a statement published by HKEX on Wednesday, significant increases in nickel prices prompted London Metal Exchange (LME) and the clearing house LME Clear to suspend trading in all nickel contracts between March 8 and March 16 last year. "This decision to suspend trading was taken because the nickel market had become disorderly. Cancellations were made retrospectively to take the market back to the last point in time at which the LME could be confident that the market was operating in an orderly manner," the statement said, adding that LME had acted in the interests of the market as a whole. Claimants Commodity Asset Management, Pala Investments, Pentimon, Welton Investment Partners, and Sunrise Capital Partners LLC are seeking damages for losses they allegedly suffered as a result of cancelled trades, adding that there had been “an unlawful interference with their human rights”. LME says the claims are "without merit".