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.

02:51

Putin tells ‘unfriendly’ nations to pay in roubles for Russian gas as economic sanctions bite

Putin tells ‘unfriendly’ nations to pay in roubles for Russian gas as economic sanctions bite

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.”

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.

“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.