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LME in court again, faces US$15.3 million suit from trading firm Jane Street Global for cancelling nickel futures trades
- The quantitative trading firm claims that LME’s decision to cancel its trades was unlawful and constituted a breach of its human rights
- Jane Street Global suit follows a US$456 million lawsuit filed by affiliates of American hedge fund Elliot Management on June 1
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The London Metal Exchange (LME) is being sued for a second time in less than a week, as legal challenges mount over its decision to suspend and cancel nickel futures trades in March.
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Jane Street Global Trading, a quantitative trading firm, filed a judicial review against LME on Monday and is seeking US$15.3 million from the exchange. Both LME and its clearing house have been named as defendants. Jane Street Global’s suit follows a US$456 million lawsuit filed by affiliates of American hedge fund Elliot Management on June 1, both in the UK high court.
It claims that LME’s decision to cancel its trades in nickel contracts on or after the midnight of March 8 was unlawful, and constituted a breach of its human rights. A similar claim was made by Elliot Management’s affiliates.
“The LME management is of the view that the claim is without merit and the LME will contest it vigorously,” Hong Kong Exchanges and Clearing (HKEX), the London bourse’s parent firm, said in an exchange filing in Hong Kong on Tuesday. “It should be stressed that the LME always acted in the interests of the market.”
Jane Street Global has offices in London, Hong Kong, New York and Amsterdam, according to its website. Quant trading firms rely on quantitative analysis and mathematical computations to identify trading opportunities across several markets.
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