In its complaint, Elliott claims more than 450 million dollars, added a source familiar with the procedure contacted by AFP.
In chaotic trading at the start of Russia's invasion of Ukraine, nickel had a wild day on March 8 with the price rising tenfold to over $100,000 from just over $20,000 at the start of the year. year.
The extreme price volatility had been caused by the unfortunate downward bet of a Chinese nickel giant, which had been forced to liquidate its position by buying futures contracts at all costs.
The LME had simply canceled trading for the session, a measure strongly criticized by investors and which has already attracted the attention of British regulators.
"Elliott believes that when the LME canceled the March 8, 2022 nickel swaps, it acted illegally and beyond its powers," a spokesman for Elliott told AFP.
The London Metal Exchange, one of the oldest financial institutions in the City created almost a century and a half ago, had argued that it was necessary to act because some of the market participants risked bankruptcy.
The LME "considered irrelevant factors and failed to include relevant factors," Elliott now accuses.
The exchanges were canceled "to bring the market back to the last moment at which the LME was certain that it was operating in a coherent manner", defends the LME in a comment sent to AFP.
"The LME and LME Clear", the LME clearinghouse also targeted by Elliott's action, "have consistently sought to act for the benefit of the market", adds the Metals Exchange, which "considers Elliott's complaint baseless and will vigorously defend itself from any legal action".
© 2022 AFP