The London Metal Exchange is planning to launch new metals contracts using prices from the Shanghai Futures Exchange, three sources said, further increasing China’s influence on global metals markets.

The London Metal Exchange and its parent, Hong Kong Exchanges and Clearing (HKEX), are ready to move forward and reboot investor confidence after winning a legal battle against American financial firms over cancelled nickel trades last year.

Judicial review of London Metal Exchange’s decision to cancel trades in March 2022 has potential to dramatically reshape how bourses respond to extraordinary market events in the future.

The London Metal Exchange was forced to step in to stabilise the nickel market in March 2022 as chaos in the market put several members at risk of default and would have depleted the bourse’s fund to close out defaulted members’ positions, the bourse’s lawyer said.

HKEX-owned bourse made ‘irrational’ decision to cancel trades amid nickel market chaos on March 8, 2022, Jane Street lawyer said.

A judicial review in London is considering claims by Elliott Associates and Jane Street Global Trading that they were disenfranchised by LME’s response to chaos in the nickel market.

The HKEX-owned bourse faces lawsuits from US hedge fund Elliott Associates and quantitative investing firm Jane Street Global Trading over its decision to suspend trading and cancel nickel trades in March 2022.

The 146-year-old metal trading bourse is doing something every day to earn investors’ trust, CEO Matthew Chamberlain says. This includes a two-year action plan to revive its markets.

The bourses, both owned by Hong Kong Exchanges and Clearing, are together studying the possibility of offering investors the chance to buy and sell contracts of lithium carbonate, nickel sulphate and cobalt, said Dong Feng, general manager of the QME.

With its new “action plan”, the Hong Kong Exchanges and Clearing-owned bourse is seeking to rebuild investor confidence a year after chaos in nickel market.

The fallout from chaos in the nickel market last March has hurt volumes at the Hong Kong Exchanges and Clearing-owned London Metal Exchange and emboldened potential competitors as the bourse prepares to relaunch trading during Asian business hours.

A group of hedge funds and traders are seeking about £80 million (US$96.2 million) from the London Metal Exchange and LME Clear for alleged losses tied to cancelled nickel contracts in March 2022.

The Financial Conduct Authority will investigate the London Metal Exchange’s conduct and controls after last year’s temporary suspension of nickel trading.

The 146-year-old bourse said it was ‘committed to taking all the necessary steps’ to rebuild public confidence in its metals market, and would unveil an implementation plan in response to recommendations by consultant Oliver Wyman by the end of the first quarter.

The decline comes amid ongoing concerns that China won’t recover quickly from Covid-related shutdowns and cascading US inflation threatens a recession in the world’s largest economy.

China’s 2060 carbon neutrality goal and urbanisation will be key drivers of demand for commodities globally in the post coronavirus pandemic era, creating huge opportunities for Hong Kong, according to Nicolas Aguzin, CEO of bourse operator Hong Kong Exchanges and Clearing.

Oliver Wyamn’s review will run until December and examine issues that forced the London bourse to suspend nickel trading and cancel completed trades in March.

LME CEO Matthew Chamberlain has said the lack of transparency in OTC positions made it difficult to manage the chaotic situation in the nickel market.

Hong Kong Exchanges and Clearing acquired the 145-year old London Metal Exchange in 2012, extending its role as a ‘super-connector’ by linking China’s commodity markets with the world. It has not gone according to the script.

Managed Funds Association, a trade body representing some of the world’s biggest hedge funds, claims LME failed to properly carry out its regulatory obligations by cancelling nickel trades in early March.

LME faces second lawsuit in the UK court from trading firm Jane Street Global, over its controversial decision to cancel nickel trades in March.

The London Metals Exchange has been sued by two affiliates of American hedge fund Elliott Management for its suspension of nickel futures trading.

New over-the-counter reporting requirement is part of LME’s expected reforms to address conditions that led to a weeklong suspension of nickel trading in March.

Matthew Chamberlain will stay as London Metal Exchange CEO, backtracking on plans to leave in May as the 145-year-old bourse faces a challenging period following a weeklong suspension of nickel trading in March.

The UK’s Financial Conduct Authority and the Bank of England will conduct a review to see what lessons can be learned from the London Metal Exchange’s unprecedented suspension of trading in March.

Some traders are questioning whether the Shanghai Futures Exchange or the CME should play a bigger role in metals market after chaotic return of nickel trading on the London Metal Exchange.

The decision to suspend trading of nickel and cancel trades was “something we never wanted to have to do”, but it was needed for market stability, London Metal Exchange CEO Matthew Chamberlain says.

NIO’s 49 per cent jump in fourth-quarter revenues beat analysts’ estimate of 9.72 billion yuan, but adjusted net loss rose 31.5 per cent to 1.75 billion yuan.

Shares of Hong Kong and Moscow-listed aluminium producer Rusal fell by as much as 9 per cent on Monday morning after Australia slapped an immediate ban on the export of key materials bauxite and alumina to Russia.