Elliott Associates and Jane Street Global Trading's $475 million lawsuit over the controversial cancellation of nickel trades by the London Metal Exchange in March last year, is due to get underway in a court in London today (20 June), reports Reuters.

Elliott Associates and Jane Street Global Trading's $475 million lawsuit over the controversial cancellation of nickel trades by the London Metal Exchange (LME) in March last year, is due to get underway in a court in London today (20 June), reports Reuters. 

During a period of chaotic tracing  on 8 March, 2022, when nickel prices more than doubled in a matter of hours to a record price in excess of $100,000 a tonne, the LME took the decision to suspend trading for the first time since 1988 and cancel all trades that day as it believed $19.7 billion of margin calls would have led to the bankruptcy of multiple clearing members and created systemic market risk.

The report cites court documents as revealing that Elliott and Jane Street believe that in doing so, the LME acted unlawfully, breached its published policies, was disproportionate, favoured some market participants over others, and violated their rights under the European Convention of Human Rights to the “peaceful enjoyment” of possessions.

They are claiming a combined $472 million from the London Metal Exchange in a judicial review of its decision to cancel the trades.

The hearing is scheduled to last for three days.