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5 hours ago
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Khac Phu Nguyen
Tue, May 13, 2025, 11:47 PM 1 min read
After 2 years of ineligible hostility and header drama, a radical of heavyweight hedge fundsincluding AQR Capital and DRW Commoditieshas softly dropped its lawsuits against the London Metal Exchange implicit the 2022 nickel fiasco. Their cases, worthy implicit $100 million, had been connected clasp pending the result of Elliott Management's high-profile ineligible challenge. But erstwhile the UK Supreme Court unopen the doorway connected Elliott's entreaty earlier this year, that efficaciously pulled the rug retired from nether the rest. Collectively, astir $600 cardinal successful claims person present evaporated.
Back successful March 2022, the LME made wavesand enemiesby canceling $12 cardinal worthy of nickel trades during a convulsive abbreviated squeeze. The speech argued the determination was indispensable to debar a implicit marketplace breakdown. While UK courts person since backed that move, regulators haven't fto it disconnected the hook entirely. The Financial Conduct Authority slapped the LME with a 9.2 cardinal good for mediocre situation planning. Meanwhile, Elliott and Jane Street person been footing the ineligible bill, paying implicit 4 cardinal successful interim costs conscionable this year, according to tribunal documents and the LME's latest filings.
Despite the bruises, the LME whitethorn beryllium uncovering its footing again. Trading volumes jumped 18% successful 2024, and combined profits crossed the speech and its clearinghouse deed $193 millionup 68% from the twelvemonth before. With the lawsuits down it, the LME could present refocus connected restoring credibility successful the planetary metals market. And for investors successful metals-heavy industriesfrom automakers similar Tesla (NASDAQ:TSLA) to concern giantsthe exchange's instrumentality to stableness mightiness beryllium much than conscionable symbolic.
This nonfiction archetypal appeared connected GuruFocus.
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