Nickel trading in the London Metal Exchange hit yet another glitch on Thursday after unprecedented short squeeze last week and glitch on Wednesday.
According to Bloomberg data, the start of the second day of trading after week long of suspension was delayed to 8:45 a.m. on Thursday amid series of glitches in the LME’s electronic system.
Brokers found that orders to sell at the lower limit 8% below Wednesday’s closing price were being rejected.
Three trades did go through at that price but four minutes before the market had been due to open. LME informed brokers that trading wouldn’t restart until 8:45 a.m. and canceled the three earlier trades.
Finally, when market opened, futures dropped by the daily limit of 8% $41,945 a ton, however only two trades had taken place during the early hours of trading.
The development adds to the embarrassment on the LME as it fails to restore usual trading of one of the world’s most important metals.
“Credibility is very quickly slipping through their fingers,” Keith Wildie, head of trading at Romco Metals, said by phone from London, as reported by Bloomberg. “It’s eroding very rapidly.
