(BFM Stock Exchange) – The British Stock Exchange gendarme inflicted a fine of more than 9 million pounds at the London Metal Exchange for shortcomings that had led to erratic exchanges on metal.
The British Financial Markets Authority (FCA) inflicted a fine of 9.2 million pounds (11 million euros) on Thursday on the London metal scholarship, for shortcomings that led to chaotic exchanges on nickel in March 2022 after the invasion of Ukraine by Russia.
Between March 4 and 8, 2022, the price of the contract eventually at 3 months on the nickel of the London Metal Exchange (LME) had experienced extreme volatility.
The price of industrial metal had been abused after the start of the war in Ukraine, Russia being the third planetary producer, and the erratic prize movements had caused strong criticism against the LME.
Lack of adequate policies
The latter “should have been better prepared to face the serious risks posed by extreme volatility,” said Steve Smart, an FCA official, adding that it is the first measure of this type “against a recognized investment scholarship in the United Kingdom”.
The LME did not have adequate policies on its automatic volatility controls and price range, notably points to the FCA.
“The highest point was reached in the early hours of March 8, 2022, when the price exceeded 100,000 dollars, more than double the closing price of March 7, 2022, most of the increase having occurred in just over an hour,” said the press release.
Tuesday March 8 transactions were canceled by the LME, including more than $ 100,000 per tonne. The exchanges were then interrupted for more than a week.
Two financial companies, Elliott Management and Jane Street, had filed a complaint, considering that the cancellation decision was not in accordance with the law – but British justice ruled, at first instance as on appeal, in favor of the LME.
The LMA “accepts the conclusions relating to its systems and controls”, he reacted in a separate press release-a recognition of responsibility which enabled it to benefit from a reduction of 30% of the financial sanction, according to the FCA.
“Since March 2022, important work carried out by the LME and the FCA have made it possible to considerably reduce the risks that such an event does not happen again,” adds the metal stock market.
(With AFP)
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