Published by Global Banking & Finance Review®
Posted on March 20, 2025
1 min readLast updated: January 24, 2026
Add as preferred source on GoogleThe LME was fined $12 million by the UK's FCA for mishandling the 2022 nickel crisis, highlighting inadequate systems during severe market stress.
(Reuters) - Britain's financial regulator on Thursday fined the London Metal Exchange 9.2 million pounds ($11.9 million) over its handling of the 2022 nickel crisis, and said the exchange had failed to ensure its systems were well-equipped.
In March 2022, the LME was forced to halt nickel trading and cancel trades after prices doubled to more than $100,000 per tonne in a surge blamed on short-covering. But the move had cost the exchange severely.
Britain's Financial Conduct Authority said the LME had failed "to ensure its systems and controls were adequate to deal with severe market stress", and highlighted how its automatic volatility controls operated and crises were escalated and managed internally.
"We take our responsibilities as a global market operator very seriously, and acknowledge that we could have provided a better line of defence...," LME Chief Executive Officer Matthew Chamberlain said in a statement.
The LME, operated by the Hong Kong Exchanges and Clearing Ltd, has qualified for a 30% reduction in the fine since it accepted the findings, the regulator said.
($1 = 0.7721 pounds)
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Shilpi Majumdar)
The main topic is the $12 million fine imposed on the LME by the UK's FCA for its handling of the 2022 nickel crisis.
The LME was fined for failing to ensure its systems were adequate to handle severe market stress during the 2022 nickel crisis.
In March 2022, the LME halted nickel trading and canceled trades after prices surged over $100,000 per tonne.
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