LME’s inability to identify short positions key in nickel market blowout, report says

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3 min read . Updated: 10 Jan 2023, 07:14 PM IST YUSUF KHAN, The Wall Street Journal

The offices where the London Metal Exchange is headquartered are seen in the City of London. (REUTERS) — The offices where the London Metal Exchange is headquartered are seen in the City of London. (REUTERS)

Oliver Wyman said that the existence of large, exposed short positions was in part due to the LME’s inability to identify and address these positions as they were being built-up

The London Metal Exchange’s inability to identify and address exposed over-the-counter short positions within the nickel market was key in the market blowout of March 2022, according to an independent review of the short squeeze last year.