The London Metal Exchange said buying and selling of nickel will resume on Wednesday, after it suspended the market for six trading sessions following an unprecedented price surge.
The exchange unveiled rules meant to rein in nickel-price moves and protect its members, after Chinese metals giant Tsingshan Holding Group racked up billions of dollars in losses from wrong-way bets. The LME also introduced guardrails for trading in other metals.
The LME canceled some $3.9 billion in transactions last Tuesday after its three-month nickel contract jumped above $100,000 a metric ton in Asian trading hours. That made the popular contract’s last closing price that of March 7—$48,078, nearly double its level the prior week.
The LME said it would allow nickel to rise or fall “at least 5%” daily, and would keep the price limits under review, given market…
