Nickel update: Given unprecedented movements in the nickel price, the LME has made a number of announcements including:
- Suspension of trading (see notice 22/052)
- Cancellation of recent trades (see notice 22/053)
- Temporary cessation of publication of Official Prices and Closing Prices (see notice 22/054)
- Criteria for the resumption of trading (See notice 22/055)
- Position transfers and fees (See notice 22/056)
IMPORTANT DATA NOTE: The LME’s systems (inclusive of LME.com) shall continue to generate values for the Official Prices and the Closing Prices (including 8 March 2022). However, these values shall not constitute Official Nickel Prices or Closing Nickel Prices for the purposes of the LME Rules (or for the purposes of any market data agreements between the LME and market data users).
1
THE LONDON METAL EXCHANGE AND LME CLEAR
10 Finsbury Square, London EC2A 1AJ | Tel +44 (0)20 7113 8888
The London Metal Exchange is registered in England (no 2128666)
LME Clear Limited is a private limited company and is registered in England (07611628)
LME.COM
To: All members and other interested parties
Ref: 22/052
Classification: Trading
Date: 08 March 2022
Subject: SUSPENSION OF LME NICKEL MARKET
Summary
1. Following further unprecedented overnight increases in the 3 month nickel price, the LME has made
the decision to suspend trading for, at minimum, the remainder of today (Tuesday 8 March 2022).
Background
2. The LME, in close discussion with the Special Committee, has been monitoring the LME market and
the effect of the evolving situation in Russia and Ukraine. It is evident that this has affected the nickel
market in particular, and given price moves in Asian hours this morning, the LME has taken this
decision on orderly market grounds.
Defined Terms
3. Defined terms used in this Notice shall have the meaning ascribed to them in the LME Rulebook or
the Rules and Procedures of LME Clear, as applicable, unless otherwise defined in this Notice.
Actions
4. Trading of the LME Nickel contract on all venues of the LME market will be suspended as of 0815
(London time) on 8 March 2022.
5. Trading will be disabled in LMEselect, and nickel trading will not be permitted on the Ring. Additionally,
inter-office trades should not be booked for nickel after this time.
6. Margin on the LME Nickel contract will, for the present time, be calculated on the basis of Closing
Prices on 7 March 2022. LME Clear will consider what additional measures, if any, should be taken
from a risk management perspective.
7. The LME’s other contracts will continue to trade as normal, but will be closely monitored.
Next steps
8. The LME will actively plan for the reopening of the nickel market, and will announce the mechanics of
this to the market as soon as possible. The LME will give consideration to a possible multi-day closure,
given the geopolitical situation which underlies recent price moves. In this context, the LME will also
make arrangements to deal with upcoming deliveries.
9. The Exchange will further consider whether trades booked prior to 0815 today should be subject to
reversal or adjustment, and will again update the market as soon as possible.
Questions
10. Members who have questions regarding this process should contact their Relationship Manager.
Page 2
Matthew Chamberlain
CEO
cc: Board directors
Special Committee
Nickel Price: Get all information on the Price of Nickel including News, Charts and Realtime Quotes.
markets.businessinsider.com
thehill.com
