Britain’s financial regulator fined the London Metal Exchange on Thursday for allowing nickel prices to surge out of control three years ago in the first ever enforcement action against a UK exchange.
The Financial Conduct Authority imposed a penalty of 9.2 million pounds ($11.9 million) on the world’s oldest and largest market for industrial metals after an investigation found multiple failures to deal with severe market stress.
The FCA said only junior staff were on duty in the early morning of March 8, 2022, when nickel prices rocketed to more than $100,000 a metric ton, more than doubling in a matter of hours. “This meant that when price rises in the nickel contract became increasingly extreme during the early hours of 8 March it was not escalated to senior LME managers,” the FCA said in a statement.
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