Nickel 28 Capital Corp.
Suite 5300, TD Bank Tower,
Box 48, 66 Wellington Street West, Toronto, ON M5K 1E6
info@nickel28.com
Update on LME Lawsuits
The London Metal Exchange (LME) is getting ready for the court case brought by two financial institutions over the cancellation of billions of dollars’ worth of nickel trades.
The case, which could impact the reputation of London as a financial center, stems from the LME's decision to annul around $12 billion in nickel deals in March last year due to a record-breaking surge in prices.
Hedge fund Elliott Associates and market maker Jane Street Global Trading are collectively suing the LME for $472 million, alleging that the exchange failed in its responsibilities.
The LME argues that it had the authority to close the market and cancel trades to prevent bankruptcy and systemic market risk.
The trial will span three days, and if the LME is found at fault, a second trial would determine compensation. The outcome of the case will also address the issue of when a financial exchange has the right to void legitimately placed trades.
Reuters has published a thorough breakdown of the case here.
Forward-Looking Information: Some of the posted entries on the CEO Corner may contain forward-looking statements. Forward-looking statements address future events and conditions which involve inherent risks and uncertainties. Actual results could differ materially from those expressed or implied by them. Examples of forward looking information and assumptions include future estimates of the worldwide supply and demand for nickel and other metals and the effect that these changes could have on the short term and long term price of nickel and other metals on the world markets, statements regarding the future operating or financial performance of Nickel 28 including the net present value, metal recoveries, capital costs, operating costs, production, rates of return and payback. Forward looking statements involve known and unknown risks and uncertainties which may not prove to be accurate. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar.com.
In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "projects", "plans", "anticipates" and similar expressions. These statements represent management's expectations or beliefs concerning, among other things, future operations and various components thereof affecting the economic performance of Nickel 28. Undue reliance should not be placed on these forward-looking statements which are based upon management's assumptions and are subject to known and unknown risks and uncertainties, including the business risks discussed above, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted.
Links: Some of the posted entries on the CEO Corner may include links to 3rd party websites. Nickel 28 has not reviewed all websites linked to or from this Site and is not responsible for the contents of any such websites. The inclusion of any link does not imply endorsement by Nickel 28 of the linked website or its content. Use of any such linked website is at the user's own risk.
For further information we refer you to our legal notice.
