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LME told to tighten volatility controls to stop another nickel crisis

Independent review tells the exchange it needs to overhaul how it supervises markets after last year's nickel short squeeze

The LME was at the centre of a scandal after cancelling billions in trades in March
The LME was at the centre of a scandal after cancelling billions in trades in March Photo: Luke MacGregor/Getty Images

The London Metal Exchange needs to overhaul how it oversees live trading to prevent another market collapse after it was forced to cancel $4bn in nickel trades, a report into the fiasco says.

The exchange needs to improve its risk and control functions and upgrade its volatility controls, according to consultants Oliver Wyman, who were commissioned by the LME to review what caused the March 2022 crisis in the nickel market.

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