Column: Court case shines a harsh light on London Metal Exchange

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Column: Court case shines a harsh light on London Metal Exchange
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The first part of the London Metal Exchange's (LME) courtroom drama is over after three days of legal argument at London's Royal Courts of Justice.

, now awaits judgment on whether its cancellation of nickel trades on March 8 last year was lawful.

Based on the scale and speed of price move and the absence of any Russian news, "there was no doubt in my mind that the market had become disorderly," Chamberlain said in court documents.during the early Asian trading hours, which contributed to the market wildness, according to Elliott and Jane Street.

However, as John Maynard Keynes famously quipped, markets can remain irrational longer than you can stay solvent.DIDN'T SEE IT COMING? The LME compliance department, it seems, may be proficient at monitoring on-exchange trading activity but doesn't have an ear to the ground, or at least in the bars frequented by LME traders.

Alternative counsel doesn't appear to have been given. And alternative pathways were missed, according to Elliott and Jane Street.

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