UK judge dismisses hedge funds' case against LME over nickel (updated)

Flow Traders

23/12/2022 11:31

(Adds response from LME and others)
    By Nell Mackenzie
       Dec 23 (Reuters) - 
    A British judge on Friday dismissed a case against the
London Metal Exchange brought by hedge fund AQR Capital
Management and others that demanded phone call transcripts and
meeting notes about the exchange's decision in March to cancel
nickel trades.    
  
        Justice Adrian Beltrami said in his ruling that even if
there was, on the part of the LME a "good arguable case of
wrongdoing," the judge considered "the merits of the case as
weak."    
  
        AQR and others filed legal action in September after a
wild price spike in nickel spurred the LME to cancel deals worth
billions of dollars, which they said led to "significant losses"
for market participants.
    The other claimants in the filing at the London Commercial
Court were Winton Capital Management, Capstone Investment
Advisors, Flow Traders  FLOW.AS  and DRW Commodities.
    "This application was misconceived from the start – the LME
having already provided a detailed explanation of its decision
making - and we are pleased that it has been dismissed in its
entirety," said the LME, in a statement. 
        Winton declined to comment. AQR and the others were not
immediately available for comment when contacted by Reuters.
  
 (Reporting by Nell Mackenzie; Editing by Amanda Cooper)
 ((Nell.Mackenzie@thomsonreuters.com;))