The Nickel That Broke the London Metal Exchange
In 2022 a single trader's bet against nickel prices spiraled into an $8 billion loss overnight, and the 145-year-old London Metal Exchange did something almost unthinkable: it canceled billions in trades and rewound the market as if the day never happened. This episode traces how one cornered position exposed the fragile human decisions behind a market that claims to be neutral.
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Tsingshan Holding Group built a short position representing one-eighth of the total London Metal Exchange open interest.
Nickel prices surged two hundred seventy percent in three days following the invasion of Ukraine.
The London Metal Exchange voided four billion dollars in trades to prevent a systemic market collapse.
Xiang Guangda faced eight billion dollars in margin calls as nickel prices topped one hundred thousand dollars.
The United Kingdom High Court upheld the exchange's legal authority to prioritize system survival over trade finality.
JPMorgan provided critical margin support to prevent the disorderly liquidation of the world's largest nickel producer.
- 01Intro1 min
- 02The Giant's Hedge2 min
- 03Three Days of Chaos2 min
- 04The Great Undo2 min
- 05Stability vs. Finality3 min
- 06Outro1 min
- The Nickel Short Squeeze: What Happened?
- LME Nickel
- The Nickel Short Squeeze: What Happened?
- The Case of LME Nickel Contracts on March 8, 2022
- Independent Review of Events in the Nickel Market in ...
- LME forced to halt nickel trading, cancel deals, after prices top $100,000
- Nickel booms on short squeeze while other metals retreat
- Central Clearing and Trade Cancellation: The Case of LME Nickel ...
- LME CEO Defends Cancellation of Nickel Contracts - Markets Media
- The Case of LME Nickel Contracts on March 8, 2022 by John Heilbron
- POLICY ON ORDER CANCELLATION AND CONTROLS
- Lessons From Trade Cancellation at the LME in March 2022
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