Britain’s financial regulators plan to conduct a review of the London Metal Exchange’s handling of an unprecedented suspension of nickel trading amid a short squeeze last month and its chaotic resumption a week later. The metals bourse, which is owned by Hong Kong Exchanges & Clearing (HKEX), suspended nickel trading and cancelled all transactions on March 8 after prices surged 250 per cent in just over 24 hours, threatening dozens of short sellers, including the world’s largest stainless steel producer Tsingshan Holding Group. On Monday, the Financial Conduct Authority said it would conduct a review of the exchange’s handling of the situation to “determine what lessons might be learned in relation to the LME’s governance and market oversight arrangements” . The Bank of England said it would undertake a similar review of the operations of the bourse’s clearing house, LME Clear, to determine whether any lessons might be learned related to its governance and risk management. The exchange also said on Monday it would conduct an independent review of the matter, with “sizeable positions in the OTC market and the LME’s lack of direct visibility of such activity” contributing to instability in the market. “The LME fully recognises the impact of these events on a broad spectrum of market participants, and understands that not all participants agreed with the course of action undertaken,” the bourse said. “The LME sought to act in the interests of the market as a whole and acknowledges the concerns expressed by some market participants.” Commodity prices, from oil to wheat to metals, surged in early March on fears of supply shortages following Russia’s invasion of Ukraine . Nickel, which traded between US$22,750 and US$25,260 a tonne in February, briefly topped US$100,000 a tonne during the Asian trading session early on March 8, threatening Tsingshan and other short sellers with billions of dollars of losses. The LME suspended trading and cancelled all transactions that morning. Electronic trading resumed a week later, but was again suspended for most of the first day back because of a software glitch. A further delay hit trading the following morning. The stop-start return of trading and cancellation of trades has undermined investor confidence in the London market, with nickel volumes remaining below February levels. Some traders have threatened lawsuits and a regulatory review was widely expected. Matthew Chamberlain, the LME CEO, has said the surge in nickel prices threatened market stability and forced the exchange to cancel trading in one of its metals for only the second time in its 145-year history. “As an exchange you have to make decisions and you have to make decisions you consider to be right,” Chamberlain told the Post . “Our task is to ensure we are never in a position where we ever have to do that again.” The FCA and the Bank of England said that they intended to appoint “skilled persons” to assist in their review and report on the matter. “The FCA and the Bank will consider these reports in determining whether further action should be taken and will announce next steps in due course,” the regulators said.