LME halted trading in nickel, but also cancels all the days tradesThe London Metal Exchange said it

Mar 19, 2022
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LME halted trading in nickel, but also cancels all the days trades

The London Metal Exchange said it was what was best for the market, the exchange didn't keep to its neutral position, but "picked winners and losers." Cancelling orders (after the event - the held a meeting and decided to let trading continue, but then after the day they decided to cancel all that had happened) is basically unheard of. 500 nickel trades had been executed that day, worth almost $4b.

Nickel was up like 240%, a huge short squeeze.

When LME cancelled the trades that had already taken place, it wiped out an estimated $1.3b in profits and losses.

It has been said that the entity who would have benefited most from the trades being cancelled is Tsingshan Holding Group, the world's largest stainless steel producer, who was estimated to have lost $8b on their short position. Tsingshan's biggest lender and broker is China Construction Bank.

It was pointed out (most vigorously perhaps by those who lost on the cancelled trades) that the LME is owned by the Hong Kong Exchanges and Clearing.

The LME CEO said the owner of the LME had nothing to do with it.

This story is much more complicated, with the various companies involved, as well as the China being state controlled having some effects, and the Russian 'blood diamond' nickel issue: Cancelled Nickel Trades on the LME - YouTube

#China #London
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<div><b>LME halted trading in nickel, but also cancels all the days trades<br></b></div><div><br></div><div>The London Metal Exchange said it was what was best for the market, the exchange didn't keep to its neutral position, but "picked winners and losers." Cancelling orders (after the event - the held a meeting and decided to let trading continue, but then after the day they decided to cancel all that had happened) is basically unheard of. 500 nickel trades had been executed that day, worth almost $4b. <br></div><div><br></div><div>Nickel was up like 240%, a huge short squeeze. <br></div><div><br></div><div>When LME cancelled the trades that had already taken place, it wiped out an estimated $1.3b in profits and losses. <br></div><div><br></div><div>It has been said that the entity who would have benefited most from the trades being cancelled is Tsingshan Holding Group, the world's largest stainless steel producer, who was estimated to have lost $8b on their short position. Tsingshan's biggest lender and broker is China Construction Bank. <br></div><div><br></div><div>It was pointed out (most vigorously perhaps by those who lost on the cancelled trades) that the LME is owned by the Hong Kong Exchanges and Clearing. <br></div><div><br></div><div>The LME CEO said the owner of the LME had nothing to do with it. <br></div><div><br></div><div>This story is much more complicated, with the various companies involved, as well as the China being state controlled having some effects, and the Russian 'blood diamond' nickel issue: <a target="_blank" href="https://www.youtube.com/watch?v=tHXF5LyLI4M">Cancelled Nickel Trades on the LME - YouTube</a> </div><div><br></div><div><a href="http://landandseajournal.com/post/hashtag/China"><a href="http://landandseajournal.com/post/hashtag/China">#China</a></a> <a href="http://landandseajournal.com/post/hashtag/London"><a href="http://landandseajournal.com/post/hashtag/London">#London</a></a><br></div>
LME halted trading in nickel, but also cancels all the days trades

The London Metal Exchange said it was what was best for the market, the exchange didn't keep to its neutral position, but "picked winners and losers." Cancelling orders (after the event - the held a meeting and decided to let trading continue, but then after the day they decided to cancel all that had happened) is basically unheard of. 500 nickel trades had been executed that day, worth almost $4b.

Nickel was up like 240%, a huge short squeeze.

When LME cancelled the trades that had already taken place, it wiped out an estimated $1.3b in profits and losses.

It has been said that the entity who would have benefited most from the trades being cancelled is Tsingshan Holding Group, the world's largest stainless steel producer, who was estimated to have lost $8b on their short position. Tsingshan's biggest lender and broker is China Construction Bank.

It was pointed out (most vigorously perhaps by those who lost on the cancelled trades) that the LME is owned by the Hong Kong Exchanges and Clearing.

The LME CEO said the owner of the LME had nothing to do with it.

This story is much more complicated, with the various companies involved, as well as the China being state controlled having some effects, and the Russian 'blood diamond' nickel issue: Cancelled Nickel Trades on the LME - YouTube

#China #London

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