Traders work on the floor of the London Metal Exchange in London, Britain, September 27, 2018. REUTERS/Simon Dawson
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LONDON, June 23 (Reuters) – The London Metal Exchange said on Thursday it had appointed Oliver Wyman to carry out an independent review of events that led to the suspension of nickel trading in March.
The exchange suspended nickel trading on March 8 after prices spiked by more than 50% to hit $100,000 a tonne. Activity resumed on March 16 when the exchange launched daily price limits and the provision of OTC nickel trading data.
“The independent review will review the factors that contributed to market conditions… in the period leading up to, and including, 8 March 2022 and make recommendations to reduce the likelihood of similar events occurring,” the exchange said in a release.
The assessment will not cover the decision-making processes and governance arrangements at the LME and at its clearing house, LME Clear, it said.
Decision-making and governance will be a part of the regulatory reviews to be undertaken by the UK Financial Conduct Authority and the Bank of England.
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Reporting by Pratima Desai; editing by John Stonestreet and Barbara Lewis
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