Court documents showed on Tuesday that the London Metal Exchange faced further legal action in London, but did not provide information about a company called Double Eight Ltd. More details of the company's move.
The London Metal Exchange faces two new lawsuits from 10 hedge funds and asset managers after it angered investors by cancelling nickel trades last year, according to documents filed on Monday.
The world's largest and oldest metals market cancelled billions of dollars of trades after chaotic price action and suspended trading for the first time since 1988.
A source familiar with the matter told Reuters that the nickel cancellation took place on March 8, 2022, and that the wave of legal filings was due to a deadline of nearly a year for claims accusing the LME of violating human rights laws.
Double Eight is a private finance company based in England that trades securities, according to UK corporate filings.
Court documents were not immediately available to show why Double Eighth took action against the LME, which is owned by Hong Kong Exchanges and Clearing LTD.
The LME was not immediately available for comment.
On the morning of March 8, the Hong Kong Stock Exchange announced that Its wholly owned subsidiaries, the London Metal Exchange LME and LME Clear Limited, are owned by Commodity Asset Management LLC (US), Pala Investments Limited (Jersey), Pentimon Limited (BVI), Welton Investment Partners LLC (US) and Sunrise Capital Partners LLC (US) are plaintiffs seeking damages. The claim was filed with the UK Commercial Court on 7 March 2023 and served on the LME and LME Clear.
The claim derives from the Plaintiff's losses as a result of the LME's cancellation of nickel contracts executed after 00:00 UK time on 8 March 2022. The plaintiffs claim the decision unlawfully interfered with their rights and are seeking more than 10 million pounds.
