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Britain’s Financial Conduct Authority (FCA) has begun an enforcement investigation into the London Metal Exchange’s (LME) suspension of nickel trading in 2022, the watchdog said on Friday.
The FCA’s investigation will review the conduct, systems and controls that the LME had in place between Jan. 1 and March 8 last year.
The LME suspended chaotic nickel trading on March 8, 2022, after prices doubled to a record above $100,000 a tonne in a few hours.
Both the FCA and the Bank of England began a review into the trading halt last April.
The Bank of England separately said on Friday its review had pointed to several shortcomings at the clearing house of LME, adding it would name an independent monitor to assess and report on its remedial actions.
The LME said in a statement that it had taken active steps to enhance nickel market liquidity and transparency.
“The LME will cooperate fully with this process and will continue to take the appropriate steps to ensure the long-term health, efficiency and resilience of its market,” the LME added.
